A further rally in the $US in the second half of 2014 will strike some emerging economies hard
A further rally in the $US in the second half of 2014 will strike some emerging economies hard. The US economy is accelerating after a number of years of below average growth. Over the past 20 years, the US economy has been growing at an average rate of around 2.4%. Growth this year is expected to be 2.7%, and growth in 2015 is expected to accelerate further to 3.3%. Growth acceleration of this type following the depressed years of the GFC should generate an enormous increase in capital inflow into the US. With generalised strength in the $US, currencies with any structural weakness are likely to be sold down aggressively. Janet Yellen recently highlighted emerging countries at risk of collapse in their currency. Read more: (VIEW LINK)
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