Are EM Currencies Sending Risk-Off Warning?
I guess I should warn you, if I turn out to be particularly clear, you've probably misunderstood what I've said. --Alan Greenspan
I've written previously about the message emerging-market currencies send regarding risk sentiment. Generally, when emerging-market currencies appreciate relative to the U.S. dollar, risk assets do well because it suggests money is favoring higher growth, more cyclical countries. When falling, money seeks the "safety" of the U.S, fearing a period of volatility and coming deflationary pressure. My most recent column, "QE4 and the Coming Rise of EM Currencies," specifically addressed the strength in EM currencies as they related then to the announcement by the Federal Reserve to enact a third round of quantitative easing....247 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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