Emerging market currencies take a pounding

Foreign exchange weakness has dramatically exacerbated declines in emerging equity markets as investors unwind carry-trades, according to Citi.

Emerging market currencies take a pounding

Any hopes that emerging markets could somehow ring fence themselves from the eurozone debt crisis and the misery of the US economy have been unequivocally shattered this month. Forget it.

More specifically, it is their currencies that have suffered a rout, justifying the decisions of many central banks to build up their foreign exchange reserves in recent years.

Global emerging stock markets GEMs have slumped by almost 18% in September, which...

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