See rally for risky assets as early as January: Soc Gen

Commenting on the announcement of Fed taper Benoit Anne, Managing Director, head of EM strategy, Societe Generale feels all the high yielding currencies including Indian rupee post taper.

According to him although the Fed decision was a surprise, most of the global emerging markets showed a muted reaction, which means it is a bullish signal for these  markets.

Also read: Taper-lite signals Fed's support to US economy: Experts

"I am calling for a rally as soon as January for risky assets including in emerging markets and that's obviously contrary to the earlier consensus that QE tapering would be a risk-off signal, but clearly the market has decided otherwise. So that is a major development.," he added.

The Fed on Wednesday said it would reduce its monthly asset purchases by USD 10 billion to USD 75 billion, and indicated that its key interest rate would stay at rock-bottom even longer than previously promised.