The sharp differences in the magnitude of exchange rate depreciation experienced by these emerging market countries suggest that investors appear to have reacted differently to the news concerning Federal Reserve tapering from country to country, with the fragile five experiencing larger depreciation rates than other emerging market economies. As suggested by the literature, domestic factors probably influenced the different responses observed in the data. In particular, a country’s domestic economic conditions, together with its relative internal and external imbalances, are likely to have influenced the relative severity of retrenchment in capital flows following the news about Fed tapering.