Currencies go wrong.

Currencies go wrong.

Emerging markets are in turmoil in recent days, their currencies value are decreasing, financial aids are declining and inflation is rising.

Recent Fed publications indicate that the unemployment rate is reassuring for the future which might end the accommodate monetary policy of the U.S. central bank.

The average results in these emerging countries and the fear of no more additional American financial aid has pushed the investors away.

According to the report in the Wall Street Journal : "Since the beginning , the Indian rupee has declined by 3% against the dollar, the Brazilian real has lost 3.2% , and the Indonesian rupee 2.2 %" and according to Le Monde : " Just for the week of November 6 , asset managers withdrew $ 1.32 billion placed in the emerging markets". Currencies from the emerging markets are not anymore attractive.

Also, in combination of the decrease of theses currencies, the inflation rate is increasing. Prices rise and imports also, thus promoting increased budget deficit already in these states.

The harsh difficulties of theses countries are reflected in their currencies, but the instability won’t last long, economists predict that outward-oriented countries such as India and Turkey will have a considerable advantage in the financial markets. The investors will have the opportunity to take profit of their actual weakness before these currencies gain on momentum.

MBCFX Forex & CFDs Brokerage Firm