Emerging-Market Currency Slide Doesn't Break the Ongoing Trend
- Rand, lira and ruble are merely snapping back toward averages
- Key moving averages have provided support for several months
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While Thursday’s sell-off is raising questions on whether emerging-market currencies are looking vulnerable, chart patterns suggest that this isn’t the beginning of the end, but just a natural reversion to key moving averages.
The rand led losses, trimming this year’s gain versus the dollar to less than 2 percent. Still, the currency is now approaching its 233-day moving average at 13.7062 per dollar, which has held as support for almost a year now.