This paper analyzes market reactions to the 201314 Fed announcements relating to the tapering of asset purchases and their relationship to macroeconomic fundamentals and country economic and financial structures government bond yields market differentiating, and stock prices. The study uses daily data on exchange rates, for 21 emerging markets. across countries around volatile, It finds evidence of episodes. Countries with stronger macroeconomic fundamentals, deeper financial markets, and a tighter policy stance in the run macroprudential up to the tapering announcements experienced smaller currency depreciations and smaller increases in government bond yields. differentiation in the behavior of stock prices At the same time, based on fundamentals.