The risk-off sentiment is also partly fueled by speculation that the Fed will continue to taper its monthly bond purchasing program at next week’s policy meeting, which will further bolster the U.S. dollar.
“Global investors remain firmly risk-averse – the selloff in emerging markets this week, triggered in part by the steep decline in the Argentinian peso – has fuelled renewed concerns about the eventual withdrawal of liquidity as the Federal Reserve tapers its quantitative easing program,” Samarjit Shankar, director of market strategy at BNY Mellon, said in the article.
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Max Chen contributed to this article.