News

EMTurkeys Lira Slips on Higher Than Expected Inflation

0
18237500 - businessman hand pointing to investment as concept

Dec 3 Reuters Turkeys lira slipped on Thursday after a bigger than expected spike in inflation, while most other emerging market currencies in Europe, the Middle East and Africa retreated on soft economic readings and growing coronavirus case numbers.

But emerging market stocks continued to rise, hitting a near threeyear peak, as low lending rates across the world meant equities still offered the best nearterm returns. Asian stocks were the biggest contributors to gains for the day.

South African stocks were among the few EMEA stocks trading positive, as most regional bourses backtracked from recent highs.

The lira dropped as much as 0.8 to the dollar after Turkeys annual inflation jumped more than expected to 14.03 in November, its highest since August 2019, keeping up pressure for tight monetary policy after a sharp rate hike last month.

A shakeup in the countrys economic leadership last month had pointed towards a shift in monetary policy for Turkey, which has been struggling with dwindling foreign exchange reserves and an economic slowdown that predates the coronavirus pandemic.

The Turkey inflation numbers have been quite higher than what was expected …markets do not expect the Turkish central bank to increase rates at current levels but any further deterioration in the Lira would force the central bank to hike rates, said Piotr Matys, emerging markets FX strategist at Rabobank.

Russias rouble dipped 0.3 after service sector activity shrank for a second…

Euro Zone Bond Yields Hold Ground as Treasuries Calm

Previous article

Oil Rally Brought Back Controversy in OPEC

Next article

You may also like

Comments

Leave a reply

Your email address will not be published.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

More in News