As the odds of a Fed rate-hike this century drift asymptotically back towards zero, the stability-desirous central bankers of the emerging world are suddenly facing soaring currencies as hot money floods back into Emerging Asian markets. The Rupiah and Ringgit are up almost 3% overnight as everything from the Baht to the Won are surging against the USD. Asian FX is up 6 straight days against the USD (and 8 of the last 9) for the biggest 9-day gain since May 2009.
The China devaluation spike in The USD against Asian FX is rapidly being unwound...
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The Dollar Demolition of the last 9 days is the biggest since May 2009.
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As all EM FX is soaring...
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Led by a massive spike in Indonesia's Rupiah...
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So now what will the talking-heads say about a weaker USD? Especially in light of the fact that they crowed about a strong USD being indicative of a strong US economy... is The US now the dirtiest dirty shirt?
Charts: Bloomberg
