Emerging market currencies: the winners and the losers
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The weakness of the Korean won, Taiwan dollar and Brazilian real were motivated by the squeeze on global liquidity and rise of risk aversion, triggered by the US slowdown and crashing technology stocks. In the case of Brazil, the pain is also partly self-inflicted. Its central bank raised interest rates twice this year by a total of 100 basis points.
Unfortunately, the Fed's aggressive action of easing interest rates by 200 basis points in the US is failing to provide any traction for these
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