Morgan Stanley's 'Fragile 5' goes up to 'Troubled 10' in selloff
Since the sudden devaluation of the yuan, more currencies with high exposure to China are now at risk
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FORGET the "Fragile Five." These days, strategists at Morgan Stanley are worried about what could be called the "Troubled 10." That's how many nations they say are particularly at risk since China devalued the yuan. While the analysts haven't used the term themselves, it's as good a description as any for the currencies - from the Brazilian real to Peru's sol and South Korea's won - which have trading ties making them susceptible to a slowdown in the world's second-biggest economy.
"It's all about vulnerability," said Hans Redeker, the London-based global head of foreign-exchange strategy at Morgan Stanley. "Major victims of the policy change this time are currencies of countries with high export exposure and export competitiveness with China."
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