Emerging currencies hit as time runs out for US easy-money

LONDON, Jan 28 (AFP): Emerging economies scrambled to prop up their currencies on Tuesday as time runs out for US Federal Reserve stimulus, exposing them to capital outflows.
The prospect of a further tightening of US monetary policy on Wednesday brings closer the risk that stimulus tapering would vacuum more cash from emerging economies, slow global growth and dent the eurozone's recovery.
Several top emerging markets have already suffered from capital outflows as the US central bank curbs its so-called quantitative easing (QE) bond-buying stimulus.
That policy had fed flows of US money abroad in search of high returns.
The currency turmoil is hurting emerging economies in Asia, Latin America, Russia and South Africa as investors pull out funds out of riskier investments, analysts said.
India's central bank announced a surprise quarter-point increase in its key rate to 8.0 percent on Tuesday
The worries over markets such as Argentina, Brazil, India, Russia, South Africa, Thailand, Turkey, Russia and Ukraine come as the eurozone is emerging from the worst of its sovereign debt crisis.
In addition, Turkey, Thailand and Ukraine have all faced political unrest in recent weeks.