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27 Mar 2014
EM currencies extend the upside - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, notes the better tone in the EM space.
Key Quotes
"Emerging market currencies have strengthened so far this week in part supported by easing concerns over near-term developments in the Ukraine. The Russian rouble has been one of the best performing currencies this week alongside the South African rand and Turkish lira."
"It is notable that both the South African rand and Turkish lira have so far proved less sensitive to the less dovish than expected Fed policy outlook presented at last week’s FOMC meeting. Monetary tightening by the SARB and CBoT is continuing to prove successful at least in the near-term at helping to stabilize their domestic currencies with declining volatility further boosting their carry appeal".
"Global investor risk sentiment also continues to hold up relatively well despite concerns over slowing economic growth in developing economies including China and higher geopolitical risk related to developments in the Ukraine."
Key Quotes
"Emerging market currencies have strengthened so far this week in part supported by easing concerns over near-term developments in the Ukraine. The Russian rouble has been one of the best performing currencies this week alongside the South African rand and Turkish lira."
"It is notable that both the South African rand and Turkish lira have so far proved less sensitive to the less dovish than expected Fed policy outlook presented at last week’s FOMC meeting. Monetary tightening by the SARB and CBoT is continuing to prove successful at least in the near-term at helping to stabilize their domestic currencies with declining volatility further boosting their carry appeal".
"Global investor risk sentiment also continues to hold up relatively well despite concerns over slowing economic growth in developing economies including China and higher geopolitical risk related to developments in the Ukraine."