EM Currencies: Is the $SSE showing the real picture?
It's hard to ignore the $SSE's plunge today, down almost 20% to $0.1567. While some are quick to dismiss this as a one-off or niche, I'm finding it increasingly difficult to separate the underperformance here from the broader narrative building around certain EM currencies. We've seen similar, albeit less dramatic, pressures elsewhere.
Are we looking at a canary in the coal mine, or just noise? I'd love to hear some counterarguments on why this isn't a bigger deal for EM FX.
It's a fair question, especially with the recent volatility across the board. While $SSE itself might be a niche, its sharp drop could certainly be symptomatic of broader underlying issues impacting EM currencies, particularly those with less diversified economies or higher debt loads. What specific EM currencies are you seeing similar, albeit less dramatic, pressures on?