To investigate this, I compare the magnitude of observed exchange rate depreciation with a country’s macroeconomic fundamentals. I focus on fiscal and current account balances. Figure 3 shows the rate of currency depreciation between May and December 2013 and the average fiscal balances as percentages of gross domestic product between 2010 and 2012. Figure 4 shows depreciation and the average current account balance over the same periods. Both figures include a trend line that reflects the best fit between the two measures.