Fed Gifts Emerging Markets a Lifeline at Expense of Euro, Yen
- Gauge of developing-nation currencies extends winning streak
- Fed impasse boosts euro and yen, undermines ECB, BOJ Stimulus
Rates on Hold: What It Means for Emerging Markets
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Emerging markets have a friend in Janet Yellen.
Policy makers from Asia to Latin America can enjoy a reprieve from a 19 percent slump by their currencies over the past year after the Federal Reserve kept rates near zero on Thursday, stemming outflows from these economies. Their counterparts in Europe and Japan aren’t so fortunate; they’re still waiting for a U.S. rate rise that would reduce pressure to bolster easing at home.