On Monday, Indonesian rupiah forwards fell to their biggest discount to the spot price of the currency since 2011, according to the Jakarta Globe. The Philippine Peso is trading at its lowest levels against the greenback and the same can be said of the Thai baht. Those three currencies combine for about 20% of CEW’s weight.
Falling precious metals prices are weighing on the South African Rand as falling copper prices are pressuring the Chilean Peso and the list goes on.
CEW recently fell below support at $20.25, implying that those that are looking to buy this dip should exercise some patience and wait for lower prices. Emerging markets currencies fit in the “higher-beta” category, meaning that when they bounce, they could do so in rapid fashion. Problem is that bounce probably will not materialize anytime soon.
WisdomTree Dreyfus Emerging Currency ETF
ETF Trends editorial team contributed to this report.