The Sell Off of Currencies from Emerging Markets

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19e52153ef3ee85bc445748fa3d880c7Speculators in the currency markets have dismissed gossip for the trend of the currencies sell off from emerging markets as a crisis. The sell off from investors has seen emerging currencies devalue; the Indian Rupee has fallen by 15%, the Brazilian Real by 10%, and the Turkish Lira just over 5%. The currencies of other emerging markets such as Poland and Hungary, have seemed to avoid the sell off with their currencies keeping steady due to speculators forecast for recovery of the Eurozone and regulation within the market place that provides assurance to investors from the two governments and regulatory bodies. The regulation of the financial system within Poland and Hungary for years have been viewed as uncompetitive but as security within the markets is now playing a big role for investors, the markets within Poland and Hungary are now more attractive. Singapore and Hong Kong, who share similar regulatory rules, share the same treatment from investors as a safer place to invest in the Pacific Rim. The slowdown in emerging markets such as Brazil, India and South Africa are due to the U.S. Federal Reserve’s plans to reduce liquidity in the respective areas.