Friday, January 24, 2014

Emerging market currency 'contagion' spreads

Emerging market currency 'contagion' spreads:

Tim Ash, head of emerging market research at Standard Bank, said people had fallen out with emerging markets.



"The story is about fundamentals—so many emerging markets have dodgy fundamentals," he told CNBC. "You've got Turkey, Brazil, Argentina, Egypt—everyone's got problems."

But he stressed that although this was the broader picture, Friday's moves were "pure contagion."



"Even the good guys that investors like—like Mexico and Poland—are being pulled lower," he added.



"Markets are taking a long, hard look at a number of vulnerable countries, notably Turkey, and don't like what they see in terms of the credibility of the policymaking regime," said Nicholas Spiro, managing director of Spiro Sovereign Strategy.

(Read more: Emerging market currencies the Fed can't touch)

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