The Downward Spiral in Emerging Market Currencies by AL MARTIN (AL MARTIN RAW.COM)
(1-29-14) It was reported on CNBC that the Argentine peso lost 84% of its value, Brazil's real lost 35% and the Turkish lira lost 22% of its value against the US dollar. Some analysts are blaming the Fed "tapering" -- but what does this really mean?
People like to blame the Fed because it's an easy target -- even though nobody is blaming the European Central Bank (ECB) or the Bank of Japan-- and they were the first of the Big Three to withdraw monetary pabulum from the Global Hopium Cloud, as we've noted before.
Thus the Fed becomes the target because it's the first to withdraw monetary stimulus that the emerging markets had become dependent on for capital inflows and that the markets had become dependent on to maintain levels of overvaluation in the commodities that these countries produce.
The Russian ruble also fell to a historic low of 47.5 rubles to the euro. What these countries all have in common is that emerging markets' currencies are so-called "commodity currencies".