Exotic Currencies - Explain to me what is happening

Now, I can understand the "premise" of what is going on in terms of the drop in a lot of the exotics, though what is honestly happening on the inside? For instance, we have seen two days with the USD/ZAR in the last week where in one day ... one day, we have had a move larger than in the past two decades. Contrast in my words, no, that move has happened twice! So in the last twenty years we havent had such an extreme move, then in a week we get two.

Further, currencies such as the CAD, the Polish currency, the Singapore Dollar, the Turkish Lira, they are falling as if these countries are headed for significant economic collapse. At least, that would be my assumption? The investors, traders, whatever they are to be called cant get out fast enough, they are tripping over one another.

My theory is that there are groups just playing it safe in a tough economic time, they are headed for safer base currencies. However, is there such a thing as too far too fast? This is getting ... weird. Educate me, tell me what groups are thinking and why this move is happening so fast and so violently.

try and u will get ur answer...i got mine,...dont do it....majors have lower spread, no dailly hours for trading at some exotics at some brokers,...so all in all no gaps, only weekends...and u can go out almost in any circumstances,...with few exceptions...

risk aversion, risk aversion, risk aversion.

Iceland, hungary and Argentina are in dire straits indeed -- and so people are dropping anything that has anything ot do with emerging markets.

Eur/NOK has been behaving similarly, too -- just a little bit less dramatically. And Norway is one of the wealthiest nations on the planet (oil money). Today it recovered better than the others. Basically its a case of the baby being thrown out with the bath water...

You can imagine that somewhere Emergin market funds are being sold very hard, and thus the currencies follow. But again, some are in a worse situation than others.

A foreign exchange term for a thinly traded currency. Exotic currencies are illiquid, lack market depth and trade at low volumes. Trading an exotic currency can be expensive, as the bid-ask spread is usually large. Exotics are not considered major currencies because they are not easily traded in a standard brokerage account. Major currencies include the U.S. dollar, Euro, Canadian dollar and Swiss franc. Examples of exotic currencies include the Thai baht, Uruguay peso or Iraqi dinari.

Just admit that you're a text to speech program.

Exotic currencies don’t necessarily mean weak or undervalued currencies, but it does indicate limited and “not-so-popular” behavior in terms of trading activity. For example, the Kuwaiti dinar (KWD) and Saudi Arabian riyal (AED) are two high-valued currencies, but they are still considered exotics due to limited trading. Low liquidity makes it harder to trade forex exotics. Most transactions occur at banks at pre-determined fixed rates for remittance or similar activities.

Thanks for the copy/paste.>>>>>. http://www.investopedia.com/terms/e/exotic_currency.asp

There's no point to revive a 9 year old, abandoned thread with such enlightenment