Emerging Markets stocks suffer on rumours of Fed rate increase

Emerging market stocks and currencies suffered a sharp decline this week due to speculation of a US rate increase by the Federal Reserve.

The Shanghai Composite Index hit a two month low, as did South Africa's rand, and Russia's ruble.

The speculation of the rate increase comes from Federal Reserve representatives hinting that two increases this year may be warranted as US data showed accelerated inflation and new-home construction.

An announcement is expected to be made soon, as emerging markets hope for sooner rather than later.

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