News

EMLira Down after Inflation Data; EM Stocks Etreat

0

Turkish inflation rises less than expected

Lira falls but well off record lows

Russian economic forum set to begin on Thursday

Israels shekel dips 0.3

June 3 Reuters Turkeys lira fell on Thursday as May inflation came in less than expected, leaving investors guessing about the central banks next move, while other emerging market currencies made small moves ahead of U.S. jobs data.

The South African rand, Chinese yuan, Mexican peso, and the Russian rouble were all softer around 0.1 to 0.3, reflecting a similar move higher in the U.S. dollar ahead of nonfarm payroll data on Friday.

Turkeys May inflation was 16.59, against a Reuters poll prediction of 17.25 and contrary to the central banks prediction for price accelerations to plateau in April.

The lira extended losses, losing up to 0.6 before retracing some losses, though staying well away from Wednesdays record low.

The central bank will hold rates in this months meeting to convince markets of their prudency, pushing possible rate cuts as demanded by President Tayyip Erdogan to July or August, said Danske Banks chief analyst Jakob Christensen.

Increasing prices of oil, a significant import for Turkey, further impacted by rising inflation, and the recent tickup in talks about tightening by the U.S. Federal Reserve should see investors remaining cautious about the lira, he added.

Russias PMI data showed services sector activity hit a ninemonth peak in May as domestic demand improved. Trader focus will be on…

Asia Shares off 3Month Highs, Caution ahead of U.S. Payrolls

Previous article

JGBs Little Changed, 10Year Auction Slightly Weak

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in News