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FACTDROP: EIN News: Greece Downgraded As Emerging Markets Rocked by Volatility
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6/12/2013

EIN News: Greece Downgraded As Emerging Markets Rocked by Volatility


Πηγή: PRNewswire
By EIN News
Junr 12 2013

WASHINGTON, June 12, 2013 /PRNewswire-USNewswire/ -- The turmoil that has driven down a key emerging market index fund shows no sign of abating. Actions by central banks, riots in Turkey and uncertainty about the financial consequences of Japan's new economic strategies are all making global investors anxious and contributing to the flight of capital toward safer harbors, according to financial experts.

The MSCI emerging market fund has lost nearly 10% of its value in just one month. Yesterday, in an unprecedented action, MSCI downgraded Greece to emerging market status, the first time that has happened to a developed economy.

South Africa has been hit particularly hard, its currency falling to a four-year low, triggering a plunge in that nation's stock prices. Volatility also has rocked stock markets in many Asian economies, including Indonesia, Thailand and Malaysia.

The turmoil has strengthened the U.S. dollar against emerging market currencies such as India's rupee, which fell to a record low this week, as did the Thai bhat, Mexican peso and Brazilian real.

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