Turkey’s lira and India’s rupee rose 2 percent on Thursday and their stock markets surged as the Federal Reserve’s surprise decision to sustain its monetary stimulus granted a lifeline to embattled emerging markets.
The BRICS – Brazil, Russia, India, China and South Africa – and other emerging countries have complained in the past few months that the threat of the Fed running down the amount of new cash it is pumping into the economy each month is hurting their economies.
But the U.S. central bank’s announcement on Wednesday that it would maintain its ultra-easy policy for now is expected to keep funds flowing into the high-yielding markets where investors have been putting the cheap Fed cash.
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