The Post FOMC (The
Federal Open Market Committee) Minutes, Brazilian Real depreciated 2.5 %in a
Day. The Real was trading at a four-year
low.
The Real is one of the worst
performing emerging market (EM) currencies. It is down around 17 percent all
the way from May 22 when the FOMC taper talk did begin.
The Turkish Lira too
has depreciated quite significantly. Turkey too suffers from a huge CAD
problem. Like Brazil, Turkey’s Central Bank hiked base rates by around 50 bps
just the previous day, but that wasn’t enough to combat the fall.
The Malaysian Ringgit
is currently trading at a three-year low. Its gross domestic product (GDP) data
that came too disappointed the street.
The Thai Baht and the
Indonesian Rupiah too were trading weak. The Rupiah was trading at around
10,800- very close to the levels of around 11,000. Hence, today too it seems
like the pressure hasn’t been any less for EM currencies.
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