Turkish inflation in focus after Erdogan pushes to lower rates
S.African rand extends losses after record unemployment in Q1
MSCI EM stocks index breaks sixday winning streak
June 2 Reuters Turkeys lira slumped to a fresh record low on Wednesday after President Tayyip Erdogan reiterated his call for interest rate cuts, and along with weakness in some Asian peers pulled an index of emerging market currencies off record highs.
With the dollar clinging to small overnight gains on upbeat U.S. manufacturing data, MSCIs emerging market currency index dipped 0.2, snapping an eightday run of gains. Traders are now awaiting U.S. nonfarm payrolls on Friday.
South Africas rand extended losses by 0.4 after data on Tuesday showed unemployment in the first quarter hit alltime highs. Higher oil prices lifted Russias rouble, putting it on course for its best session in three weeks.
Digital currencies will be the future of financial systems in Russia, the countrys central bank governor, Elvira Nabiullina, told CNBC.
The lira was down around 0.6, after having hit a low of 8.88 after Erdogan said he had spoken to the central bank governor about cutting rates. The comments raise the stakes ahead of calls later in the day between central bank leaders and investors to discuss policy and economic prospects.
Thursdays inflation data will now prove even more important to FX markets, given the increased political pressure to lower rates at a time when markets are…