New policy norms support EM currency rise

There has been a dramatic shift in the OECD central banks’ approach to their monetary policies since 2007. The old practice of anticipating inflation has now given way to central bankers being more reactive to inflationary outcomes, reports FT.com. One of the many implications of this change is its impact on currency movements causing emerging […]

By Staff | April 4, 2013 | Last updated on April 4, 2013

1 min read

There has been a dramatic shift in the OECD central banks’ approach to their monetary policies since 2007.

The old practice of anticipating inflation has now given way to central bankers being more reactive to inflationary outcomes, reports FT.com.

One of the many implications of this change is its impact on currency movements causing emerging market currencies to steadily gain against their peers in developed economies.