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Showing posts from August, 2015

Fed rate hike vs Emerging market currency depreciation.

Right now financial market is facing the threat of rate hike in US. I think every nation has its right to protect their economy or making things better for their people, their industries e.t.c. This year currencies of Emerging nations have depreciated lot, like in Brazil, India & latest in China. Somewhere I saw that after yesterday’s devaluation China also depreciated their currencies today. Indian currencies also depreciated lot today in intra-day basis.
Today during trading hours I was really thinking is there any connection of these latest currency devaluations or depreciation with any imminent risk asset sell-off which authorities are sensing. I am not very much sure whether any sell-off is coming but some of the sectors like mining, industrial metals are giving brilliant buying opportunities. Few days ago I was talking to one of my friend from Brazil about Vale, it looks cheap but still I did not find strong voice from him about buying at this time. I think Brazilian market …