Saturday, January 25, 2014
Emerging Market Currencies Versus Dollar And Euro Last Five Days
We have all seen a big decline in stock prices across the globe in the last week. This graph shows the fall in emerging market currencies over the last five days. For example, Argentina's currency has dropped 13.8% versus the dollar. The problem for the emerging markets begins in China. Demand in China for commodities and intermediate products has been driving emerging market exports. China in turn, depends upon demand from Europe and the US for its growth. The global economy is an economy of interdependence.