A panic attack in the developing world as emerging markets sell off

“The salad days for emerging markets are over,” says the Financial Times. Last week saw a bout of “near-panic” as investors once attracted by exotic growth stories fled back to traditionally less-risky assets in the developed world.

US government bond yields fell (so prices rose) and the Japanese yen strengthened, as a Bloomberg index of 29 emerging-markets currencies fell to its lowest level since April 2009.

The Argentinian peso fell 12% last Thursday alone to a record low against the US dollar. The Turkish lira also hit yet another record low against the greenback, while the South African rand [...]

MoneyWeek magazine

Latest issue:

Magazine cover
Walking out on the banks

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 3 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

More from MoneyWeek

The problem with the Bank of England

Fracking: Nine reasons not to get carried away

Five small-cap stocks worth a flutter

This Dutch company could help us tame floods

ScreenHunter_01 Mar. 25 09.51

Get the latest tips and investment opportunities from MoneyWeek magazine: Claim 3 FREE issues HERE