Emerging currencies strengthened on Friday but some eyed weekly losses as investors digested a deluge of central bank decisions. The US Federal Reserve's much-anticipated rate hike on Wednesday sounded the starting gun for emerging market central banks to adjust their policies.
Turkey's lira strengthened 0.7 percent on the day, but was on track for a weekly loss following a 2 percent tumble on Thursday after the central bank delivered a smaller-than- expected hike to the late liquidity window, disappointing markets fretting over inflation at 14-year peaks. Mexico's peso gained 0.3 percent, but was on track for a third week of losses despite the country's central bank matching the Fed interest rate rise and signalling it was ready to act again to rein in the jump in consumer prices.
Russia's rouble was on track for a weekly gain but treading water ahead of a central bank meeting expected to deliver a key interest rate cut to 8 percent in what would be the sixth rate reduction so far this year. Rabobank strategist Piotr Matys expected Russia's central bank to continue trimming interest rates in 2018 as long as the rouble stays stable.
Comments
Comments are closed for this article.