Chart of the day: Emerging Market Currencies and Local Currency Debt

By Marc Chandler

This Great Graphic was posted by Katie Martin of Dow Jones, which she picked up from Barclay’s and was later posted by Gokkhan Kula’s from Myra Capital.

The X-axis is the change in the spot currencies against the dollar since late May. The Y-axis is the  change in the local 5-year debt.

It is a useful way to conceptualize what has happened from a total return perspective. Korea, Czech, Romania,  and China appear to have weathered the storm, thus far.

em and fx

Marc Chandler


Marc Chandler joined Brown Brothers Harriman in October 2005 as the global head of currency strategy. Previously he was the chief currency strategist for HSBC Bank USA and Mellon Bank. In addition to frequently providing insight into the developments of the day to newspapers and news wires, Chandler's essays have been published in the Financial Times, Barron's, Euromoney, Corporate Finance, and Foreign Affairs. Marc appears often on business television and is a regular guest on CNBC and writes a blog called Marc to Market. Follow him on twitter.

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