Yuan, Euro Slump Points to Losses for Emerging-Market Currencies
- Pressure on China will spill over across Asia: Wells Fargo
- Stronger-for-longer dollar will hurt euro, yuan, Goldman says
Dusk in Beijing.
Photographer: Na Bian/BloombergThis article is for subscribers only.
Losses in the Chinese yuan and the euro have picked up in recent months, and that is worsening the outlook for emerging-market currencies in Asia and Europe.
That’s because the yuan and euro play a role as “currency anchors” for their smaller peers, helping to either support them or drag them down depending on the prevailing market conditions. Their anchor role has become even stronger in recent months, a study of correlations shows.