Morgan Stanley Turns Bearish on Emerging Market Currencies on China Risks
- Bank cites yuan weakness, China growth slowdown for view shift
- Says Asian peers like Singapore dollar, ringgit most exposed
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Morgan Stanley is returning to a bearish view on emerging-market currencies, citing concerns over China’s growth risks that not only weigh on the yuan but also further pressure a weak global economy.
The shift from a neutral stance partly resulted from a view change on the offshore yuan, where the Wall Street giant has added a short position given expectations for growth risks to remain a focus, strategists led by James Lord wrote in a note. “CNH weakness and China macro weakness should spill over to the rest of EM.”