EMRussian CB Support Ruble, EM Currencies Pare Gains

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More rate hikes this year Russian central bank

Rouble hits 71.50 after rate hike

Turkish lira cuts gains, last up 0.3

Dollar edges higher 

June 11 Reuters Russias rouble hit session highs on Friday after the central bank raised its key rate amid rising inflation, while a recovering dollar saw most other emerging market currencies pare some gains.

The rouble hit 71.50 after the central bank raised the rate by 50 basis points to 5.50 and said more rate hikes through the year were likely, with inflation above target.

The rouble was last trading up 0.3 at 71.63 to the dollar.

Given the CBR has been quite open in their communication around further rate hikes being imminent this year, aggressive rouble appreciation over the medium term is unlikely, said Ima Sammani, an EM FX analyst with Monex Europe.

However, we expect the central banks decision to still moderately support the rouble going forward.

The dollar edged higher from a fall spurred by investors looking past higher than anticipated U.S. inflation on Thursday. MSCIs index of EM currencies stayed at its highest on record. FRX

Turkeys lira jumped as much as 1.9 before giving up some gains to trade up 0.3, setting itself up for its best week in nearly three months.

During U.S. President Joe Bidens visit to Europe, investors hope that he and Turkish counterpart Tayyip Erdogan will discuss differences over Ankaras planned purchase of Russian S400 air defence systems which are incompatible with NATOs…

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