Another drop in frontier market currencies

Uncertainty over the outlook for monetary policy in the US and renewed concerns about the health of China’s economy are weighing heavily on frontier market currencies. The weakest currency has again been the Kazakh tenge, which has fallen by a further 7% against the dollar since its devaluation last month. Meanwhile, the Sri Lankan rupee has dropped back sharply after the government allowed the currency to float in early September. Only two of the 30 frontier currencies we track gained any ground against the dollar last month.