The FT reports that last week emerging market currencies had their worst week since 2016 and they are down again this morning.
The Turkish lira faced the heaviest fall on Monday, sliding 0.85 per cent on the buck, with a dollar buying 4.2624 lira. South Africa’s rand was the second biggest faller, down 0.44 per cent on the greenback, while the Philippine peso, Russian rouble and Indian rupee were each off roughly 0.4 per cent.
Trading in the Argentine peso, which tumbled 6.2 per cent last week and sparked a series of three rate rises from the central bank, opens at roughly 2pm London time.
Emerging market currencies came under “ intense selling pressures last week,” said Marc Chandler, global head of currency strategy at Brown Brothers Harriman. JPMorgan’s currency gauge fell 1.7 per cent over the period, the worst fall since Donald Trump’s shock election victory sparked severe market ructions.
US Treasury yields have pushed markedly higher over the past month, with a robust economy expected to prompt the Federal Reserve to increase interest rates a total of three to four times this year. In fact, the 10-year climbed from 2.73 per cent at the start of April to above 3 per cent by April 25.
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Jeremy Jones, CFA
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