A Bloomberg customized index that tracks 20 emerging-market currencies fell for a tenth consecutive day. Argentina’s peso plunged 16 percent as the government allowed the currency to devalue by reducing support in the foreign-exchange market. Turkey’s lira weakened 4 percent, falling to a record low. The country’s central bank sold between $3.5 billion and $4 billion on Jan. 23 to shore up the lira, according to Istanbul-based brokerage Strateji Menkul Degerler. The first unscheduled intervention in more than two years still failed to stem the currency’s decline.
The Fed announced last month that it would slow its $85 billion-a-month bond-buying program by $10 billion in January, potentially reducing capital flows into emerging economies.
...and of course, as Australia is no more than a slave country, it must have its correction too. Otherwise in Macquarie St. would go the lights out.
