EM currencies will weather the storm

In reports released in the past two weeks, analysts said strong GDP growth, large foreign exchange reserves and immunity from the credit market meltdown would steer the EM economies out of short-term difficulties. Risk aversion has forced government intervention across the globe, including in emerging markets, to stabilise financial markets (FX Week, September 22).

James Syme, London-based head of emerging markets equities at Barings, said EM currencies will strengthen because it is impossible to

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