Economics
Rout in Emerging-Market Currencies Gets No Trader Respect
- Options protecting against declines near cheapest since 2014
- Goldman, HSBC remain bullish while BlackRock sees rally fading
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The selloff in emerging-market currencies that has shocked investors out of a torpor in recent days is being taken as little more than a nuisance than the beginnings of a bear market.
While the MSCI Emerging Markets Currency Index has fallen 1.7 percent in a four-day slide that started Sept. 9 after gaining more than 10 percent from its January low, derivatives show the premium traders are paying to protect against further declines is about the lowest since 2014.