Effects of Fed Tapering
Concerns over economic growth, along with lowered demand forecasts, have hammered export-reliant countries, like Thailand. Thailand's SET and Indonesia's Jakarta Composite Index have fallen 18% and 20% respectively since their May peak. The Philippine stock index is down 17%, whereas India's Sensex was down 10%. All four of these nations' currencies are down more than 10% in that time. The dollar gained against the majority of its 16 most-traded peers when the fed decided to taper. From 53.80 a dollar on 30 April, the rupee slumped 21.84% to 68.85 on 28 August. If tapering releases the headwinds and interest rates rise within the context of a stable U.S. economy, then capital may be attracted toward the U.S. currency.