Remember the emerging market crumble from earlier this year?
For a few weeks there, we were seeing all kinds of weakness in things like the Indian Rupee, the Brazilian Real, The Indonesian Rupiah, and other assets.
Well, slowly this is becoming a thing again.
Via XE.com, here’s a chart of the US Dollar against the rupee going back a year. Once again, the dollar has been strengthening hard against the rupee.
SoberLook, meanwhile, points out that Brazilian interest rates have been spiking.
And here’s the dollar against the Brazilian Real.
When emerging market assets crumbled earlier this year, it was right around the time everyone was predicting that the Fed would “taper” in September.
When that didn’t happen, they strengthened hard.
Now people are talking about a “Dectaper” (thanks to the strong US data) so it’s possible that that’s what’s going on.