What happens to the emerging markets when dollar starts strengthening?

Image via Wikipedia

What happens to the emerging markets when dollar starts strengthening?

A lot of money will go out of the EM because the strengthening dollar will impact your returns in those countries and of course investors would want to make returns in USD then in emerging markets.

now if you ask me i don't think that the dollar will appreciate from here on in a hurry as the Fed would have to continue with quantitative easing measures but then eventually after may be a year or two the easing will be reversed and the tightening will start, that's when i worry what's gonna happen to emerging markets and that will be interesting to see.

Related articles by Zemanta

• Fed worried about fragile recovery (money.cnn.com)
• Could China Be Right for You? (usnews.com)
• Market likely to suffer fresh falls says Stephen Lansdown (telegraph.co.uk)