EM currency sell-off escalates following Fed minutes

Emerging market currencies hit fresh lows after minutes from the latest Federal Reserve meeting made the prospect of tapering this year all but a certainty.

The Indian rupee hit record lows again despite the Reserve Bank of India announcing measures to buy long-dated bonds in the hope of shoring up the currency. It fell 1.6% to 64.11 against the dollar, a drop of 4% in the last week alone. Elsewhere, the Indonesian rupiah fell 0.7% to 10,755, hitting a five-year low and down 3.5% for the week. Disappointing Mexican GDP figures saw the dollar gain 1.4% on the peso to 13.16, while the South African rand fell 1.4% to 10.25.  Emerging market equities also fell, with Asian markets in particular bearing the brunt of QE fears. The MSCI Asi...