EMFresh COVID19 Cases Dent Sentiment in Asia, TRY Surges


May 17 Reuters Turkeys lira recovered from near record lows on Monday, as the country lifted some COVID19 restrictions, while gains in most other emerging market assets were capped by concerns over rising virus cases in Asia, and disappointing Chinese data.

The lira rose about 1.4 to 8.3256, leading gains across Europe, the Middle East and Africa EMEA, after the government said it will allow movement during the day after a strict lockdown imposed nearly three weeks ago.

The currency was set for its best day since early April, as it recovered from levels close to an alltime low of 8.5789. Concerns over dwindling FX reserves, central bank credibility and general risk aversion had hit the lira hard in recent weeks.

Turkish stocks rose 0.6, with most other bourses in the EMEA region marking small gains.

Leading losses among EMEA currencies, South Africas rand dropped 0.5, while Russias rouble fell 0.1 ahead of preliminary first quarter GDP data due later in the day.

Chiles stocks and the peso were widely expected to open lower, after the countrys centerright ruling coalition suffered a shock loss as voters backed independents for the body that will draft the countrys new constitution.

An independent Constitutional Convention suggests a heightened uncertainty regime ahead, JP Morgan analysts wrote in a note.

Hungarys forint surged 0.7 to a near ninemonth high against the euro, after the countrys central bank deputy governor Barnabas Virag flagged the possibility of…


Please enter your comment!
Please enter your name here