Grace Tam, global market strategist, JPMorgan Asset Mgmt, downplays the emerging market (EM) currency contagion. He says the fall seen is only restricted to Argentina and Turkey which have high inflation rates.
Fundamentals of most economies including emerging markets are not favourable at this point but if tapering is delayed to the end of this year, or start of 2014, it would be slightly positive for EMs from money flow perspective, believes Hans Goetti.