Currency managers caught out by dollar rise against EM currencies
A number of asset managers were caught flat-footed by the rapid appreciation of the US dollar against emerging market currencies in May, June and July, leading to losses at some currency and emerging market funds, participants say.
The move began in earnest in late May, after Federal Reserve chairman Ben Bernanke raised the prospect of a tapering of the Fed's quantitative easing programme (QE) this year. Emerging market currencies quickly tumbled, as investors that had turned to developing
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