EMFX Muted, Hungarian Forint Leads Weekly Gains on Rate Bets

0
66

May 21 Reuters Most emerging market currencies were muted on Friday, although they were set to notch weekly gains as fears over immediate policy tightening by the Federal Reserve were abated by mixed U.S. employment data.

The MSCIs index of EM currencies strengthened about 0.1, and was poised to close slightly higher this week. The dollar was headed for a weekly loss, as somewhat hawkish signals from the minutes of the Feds last meeting were offset by data that tempered expectations for a rise in employment growth this month.

The Fed has cited a labour market recovery as one of the key factors for it to taper stimulus measures, and the other being growing inflationary pressure. While inflation has accelerated in recent months, it is still well below the Feds upper limit.

Most currencies in Europe, the Middle East and Africa EMEA slightly weakened. Russias rouble weakened about 0.1 after hitting 73.2064, its highest in more than two months, as the country raised 1.5 billion euros 1.83 billion in two eurobond issues on Thursday.

The rouble was set to add about 0.4 this week, as investors welcomed dialogue between U.S. and Russian diplomats after deteriorating relations earlier this year.

Hungarys forint weakened 0.1 to the euro, but was the best performer this week among EMEA currencies with a 2 climb against the U.S. dollar.

The currency had strengthened to a 112year high after the Hungarian central bank signalled an imminent hike in interest rates to combat…

LEAVE A REPLY

Please enter your comment!
Please enter your name here