Interventions Can't Stop Bullish Sentiment

The seemingly unstoppable decline of the US dollar of late, and the concomitant rally in global commodities has seen many emerging market (EM) currencies appreciate rapidly against the greenback. The rate of currency appreciation has become a serious concern for many policymakers, most recently with Brazil's Finance Minister Guido Mantega announcing a 2% securities transaction tax for foreign investors on October 19, in a desperate attempt to stem the further rapid rise of the Brazilian real.

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