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 [...]

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