INSUBCONTINENT EXCLUSIVE:
By Enda Curran and Andrew JanesEmerging markets will face stress as they cope with a stronger dollar and rising interest rates but Asia
appears to be insulated, for now, according to Raghuram Rajan, former governor of the Reserve Bank of India.
Tipping the Federal Reserve to
raise interest rates another three times this year, Rajan said that developing economies are in a stronger position to absorb those hikes
compared with the so-called taper tantrum in 2013
Amin in Singapore on Tuesday
He cited Turkey, Argentina and Brazil as risks and also highlighted Italy as a key concern.
For Asia, narrow current account deficits,
emerging-market assets have come under severe pressure in recent months, most notably in Argentina, where the peso has plunged 19 percent
against the dollar this quarter, and in Turkey, where the lira is down 14 percent.
Economists like Andrew Tilton at Goldman Sachs Group Inc
say economic fundamentals are mostly intact, while fund managers like Patricia Ribeiro at American Century Investment Management say
boost exports and generate dollars, she said.
In Asia, India has been one of the hardest hit economies in the emerging-market rout, with the
rupee down almost 5 percent against the dollar this year
domestic growth and labor-market conditions
You make a threat, someone makes a counter threat, soon you find you cannot back off
This is true of war, it is true of trade war
One of the big worries is that threats are being made left, right and center by strongmen who want to be seen a strong and the room to back
hardened positions which are very hard to back off
And then you enter actual conflagration and that, combined with the high degree of leverage and asset prices that are priced to perfection,
