FT: A Dollar Rally Few Are Prepared to Call Time On

Emerging markets currencies have regained some tentative stability lately, but the outlook clouds quite dramatically if the Fed commits to faster interest rate increases.

“Emerging markets are very vulnerable to the Fed,” said Stephen Jen of Eurizon SLJ Capital, a hedge fund. “The cheap capital that pushed in after those years of quantitative easing was never loyal. The stronger the US economy, the quicker dollars are sucked out.”

Read the original article on the ‘FT’ website.

Posted on the 16/10/2018 at 3:22pm by Admin.