Latin (EM's) Market Update

The above link directs to a live update of the Latin markets. Over the past few days, markets have showed little to no change, some decline, but nothing significant. Over the past few months, if you decide to look back, we can see that the EM's markets have certainly "emerged" as our speaker at the Economic Conference last week had mentioned.

The Double-Edged Rupee

We are all aware by now that an open economy's currency appreciation has negative effects on its Net Exports (NX). And the current appreciation of the Indian currency, Rupee, is a perfect real life example for this phenomenon. The Indian currency rose up by 9 % against the dollar in the last few months, while its Exports fell by 6.4% .

This is not a new scenario in the global market, but what is to be noticed is that unlike some other economies who are trying hard to fight currency appreciation, India is willing to let its currency appreciate. Reasons, India is trying to absorb as much influx of money as possible from foreign investors to help support its modern consumer economy approach. This has not only led a surge in foreign investors investing in India, but has helped the Indian economy grow of which 9% comes from capital inflows.

If India, as one of the Emerging Markets, is boosting its consumer economy through currency appreciation, do you think other Emerging Market Economy such as China should be doing the same?