ANL 28.45 Decreased By ▼ -1.10 (-3.72%)
ASC 19.69 Decreased By ▼ -0.29 (-1.45%)
ASL 24.45 Increased By ▲ 0.05 (0.2%)
BOP 8.17 Decreased By ▼ -0.09 (-1.09%)
BYCO 9.80 Decreased By ▼ -0.24 (-2.39%)
FCCL 21.88 Decreased By ▼ -0.07 (-0.32%)
FFBL 26.60 Decreased By ▼ -0.40 (-1.48%)
FFL 20.05 Increased By ▲ 0.72 (3.72%)
FNEL 8.39 Decreased By ▼ -0.03 (-0.36%)
GGGL 24.90 Decreased By ▼ -0.26 (-1.03%)
GGL 41.69 Decreased By ▼ -1.91 (-4.38%)
HUMNL 6.81 Decreased By ▼ -0.11 (-1.59%)
JSCL 20.60 Decreased By ▼ -0.90 (-4.19%)
KAPCO 39.00 No Change ▼ 0.00 (0%)
KEL 3.82 Decreased By ▼ -0.01 (-0.26%)
MDTL 3.39 Decreased By ▼ -0.13 (-3.69%)
MLCF 43.05 Decreased By ▼ -0.45 (-1.03%)
NETSOL 149.30 Decreased By ▼ -7.70 (-4.9%)
PACE 7.12 Decreased By ▼ -0.08 (-1.11%)
PAEL 32.05 Decreased By ▼ -1.23 (-3.7%)
PIBTL 10.86 Decreased By ▼ -0.09 (-0.82%)
POWER 8.95 Decreased By ▼ -0.11 (-1.21%)
PRL 22.80 Decreased By ▼ -0.30 (-1.3%)
PTC 11.66 Decreased By ▼ -0.22 (-1.85%)
SILK 1.77 Increased By ▲ 0.05 (2.91%)
SNGP 49.70 Decreased By ▼ -1.04 (-2.05%)
TELE 15.50 Increased By ▲ 0.33 (2.18%)
TRG 154.43 Decreased By ▼ -5.82 (-3.63%)
UNITY 40.00 Decreased By ▼ -0.55 (-1.36%)
WTL 3.47 Increased By ▲ 0.04 (1.17%)
BR100 5,043 Decreased By ▼ -50.24 (-0.99%)
BR30 25,215 Decreased By ▼ -494.66 (-1.92%)
KSE100 47,055 Decreased By ▼ -257.04 (-0.54%)
KSE30 18,837 Decreased By ▼ -126.39 (-0.67%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
23,360
6524hr
Pakistan Cases
1,029,811
4,95024hr
8.46% positivity
Sindh
380,093
Punjab
356,211
Balochistan
30,289
Islamabad
87,304
KPK
143,673
Markets

EM FX turn positive; Mexican peso recovers from central bank reshuffle falls

  • MSCI's index of EM currencies rose 0.1% with Brazil's real rallying strongly as attention turned to next week's central bank meeting.
  • Mexico's peso erased early losses after a reshuffle of the central bank governor and finance minister on Wednesday, to rise 0.2%.
Updated 10 Jun 2021

Emerging market currencies turned positive for the day and stocks added to gains as markets brushed past higher-than-expected US inflation figures, with a central bank leadership change in Mexico denting the peso.

US inflation for May rose more than expected, but not enough to for the US Federal Reserve's to change its loose monetary policy, analysts said. The European Central Bank kept stimulus taps wide open at its meeting.

"It is eye-popping but it's important to consider where we are versus a year ago," said Scott Brown, chief economist at Raymond James in Florida. "I don't think there is any reason for the Fed to panic."

MSCI's index of EM currencies rose 0.1% with Brazil's real rallying strongly as attention turned to next week's central bank meeting. Analysts increasingly see a rate hike to control inflation, which would make the currency an attractive high yielder for carry trade.

"Economic optimism and the hope that the Brazilian central bank would more than partially normalise the key interest rate have again significantly boosted the BRL appreciation last month," said Commerzbank's EM FX analysts.

"However, we remain cautious in view of country-specific risks," they said, citing the possibility of President Jair Bolsonao taking non-conventional decisions in the run-up to presidential elections next year.

Stocks in Sao Pailo were lifted by a 11% jump in planemaker Embraer after its subsidiary, Eve Urban Air Mobility Solutions, entered merger talks with Zanite Acquisition Corp for a potential $2 billion deal.

Mexico's peso erased early losses after a reshuffle of the central bank governor and finance minister on Wednesday, to rise 0.2%.

Mexican Finance Minister Arturo Herrera was tapped on Wednesday by President Andres Manuel Lopez Obrador to lead the central bank, while economist Rogelio Ramirez de la O, a close ally, was appointed finance minister.

"Banxico's Board shall become more dovish," strategists at Citi Research said, adding that they do not expect that many changes on the fiscal front.

The moves come after the ruling party lost some of its majority in the Lower House of the Congress, making it harder to pass proposed reforms that could alter market-friendly policies.

Peru's sol made small moves as investors looked for more news on the progress of presidential vote counting. Socialist Pedro Catillo maintained a slight lead, although rival right-wing conservative Keiko Fujimori contested several ballots.

Falling copper prices weighed on top exporter Chile's peso which extended losses to day three. Chile's economy surged 15.2% in May and 14.7% in the second quarter, a central bank poll showed.