Morgan Stanley’s “coined” Fragile Five Now looks like “The Troubled 10” as currencies drop in value

In a special report, Bloomberg points out that regardless of which economic list you use, Brazil has taken the worst currency hit with the real down more than 24% against the dollar this year and almost 34% since 2013.

South Africa has also taken a huge currency hit.

The bad news is that there is not much hope for a recovery lead by a Chinese trade based recovery plan. And the expected increase in the U.S. currency rate will likewise hurt.

(See Bloomberg, Aug 16, 2015)

Citigroup G-10 Currency Strategy Head Steven Englander discusses China and emerging markets. Forget the “Fragile Five.” These days, strategists at Morgan Stanley are worried about what could be called the “Troubled Ten.” To read the entire article, go to

Once considered a core economic strength, now dependent commodities trading ties make these nation’s susceptible to a slowdown in the world’s second-biggest economy. China.

Missing from the list but also hit hard with recent currency devaluation for other reasons is Russia.

Since the economic geo-politic phrase was coined in 2013… the Brazilian real, together with Turkey’s lira, South Africa’s rand, the Indian rupee and Indonesian rupiah, have suffered as rising global interest rates make it more difficult for the countries to finance their current-account deficits.”

How do you see this correcting?

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