Turkeys lira jumps 1.5
Turkish 2021 GDP forecast raised cenbank survey
Russian cenbank seen hiking by 25 or 50 bps
S.African rand set to end lower on week
June 11 Reuters The Turkish lira jumped 1.5 on Friday ahead a meeting between Turkish President Tayyip Erdogan and his U.S. counterpart Joe Biden, and Russias rouble hit a near 11month high ahead of an expected rate hike by the central bank later in the day.
Their gains took an index of emerging market currencies to its highest on record. The index is dominated by Asian currencies such as Chinas yuan, which has risen sharply by around 12 against the dollar since May 2020 and hit its strongest levels in more than three years.
Stocks in the developing world were also on a stronger footing as investors bought into the U.S. Federal Reserves view that a period of higher inflation was transitory. That dented the dollar and U.S. bond yields.
MSCIs EM stocks index rose 0.3, bringing it to positive territory for the fourth straight week its longest winning streak since January.
We do not expect a more sustained disruption to equity markets. We agree with the Fed that elevated inflation pressures will prove shortlived. In our view, investors should continue to position for reflation, said UBS Wealth Managements Chief Investment Officer Mark Haefele.
Mainland China stocks closed lower for the day ahead of a long weekend dragged down by liquor and financial firms. Didi Chuxing, Chinas biggest ridehailing firm, on…