QE providing the ‘cover’ for foreign dollar buying?
Japan has already begun the resumption of dollar buying.
Now looking like QE is may be opening the door for a lot more?
Emerging Market Policymakers Vow to Combat Fed’s Easing
November 4 (Bloomberg) — Policymakers from Brazil to South Korea and China on Thursday pledged to come up with fresh measures to curb capital inflows after the U.S. Federal Reserve said it would print billions of dollars to rescue the economy.
The frosty reaction from emerging economies makes any substantive deal on global imbalances and currencies at next week’s Group of 20 meeting that Seoul is hosting even less likely.
South Korea’s Ministry of Finance and Strategy sent “a message to the markets”on Thursday saying it would “aggressively” consider controls on capital flows while Brazil’s Foreign Trade Secretary said the Fed’s move could cause “retaliatory measures.”