Looking to invest in emerging forex markets? Well you may want to hold on to your money as it’s been a pretty rocky year for most emerging currencies. But what’s been causing the unrest - and what are the risks?
Any country’s currency has three general factors to measure how risky it is:
- Its economic stability
- Its political stability
- Potential impacts from global events
Rates and volatility levels are continually changing so it’s important to do your research before making an investment decision.* We’ll be looking at the currencies of seven emerging markets: India, Mexico, Brazil, South Africa, Russia, Turkey and Venezuela.
THE INDIAN RUPEE
The Indian rupee is at an all-time low. It’s been hit with a double whammy of higher oil prices, worsening the country’s debt, and an exodus of foreign investors.
However, India’s GDP actually grew by 8.2% for the first quarter of the fiscal year, suggesting the economy is generally stable.
- Volatility Rating: Medium