June sell-off: Most EMs see deeper cuts than India after Fed's rate hike

Emerging markets (EMs) and currencies have seen a major rout this month, following the US Federal Reserve’s decision to hike interest rates by 75 basis points (bps) and signalling another 75-bp hike in July.

The safe-haven greenback has strengthened against most currencies this year amid reversal in capital flows. The dollar retreated somewhat last week as fall in commodity prices eased some inflationary fears.

Month-to-date returns for most stock market gauges are flashing red.

Domestic equity markets are down 5.3 per cent in local currency terms and 6.1 per cent in US dollar terms so far this month