Posted by Ravi Gulati | Posted in Economy & Markets | Posted on 26-08-2013
Christopher Veccio, currency analyst at DailyFX. said the Fed may taper more slowly than what the market currently expects.
But emerging economies like India, Brazil and Indonesia are especially vulnerable to changes in Fed policy. The U.S. dollar is already rising versus foreign currencies like the Brazilian real and the Indian rupee, and some investors are pulling their money out of these countries, triggering fears of a panic.
World markets were calm Monday though. European markets were relatively unchanged while he London Stock Exchange was closed for a holiday. Asian markets ended mixed.