Russia says it postpones FX purchases to replenish its SWF while the rouble is weakening
LONDON (Reuters) – Emerging market stocks fell to five-month lows on Tuesday following a sharp fall in U.S. and Japanese equity markets, while the Russian rouble hit its lowest level in nearly five years against the dollar.
The S&P 500 index suffered its worst drop since June and Tokyo stocks fell more than 4 percent after disappointing manufacturing data cast doubt on the strength of the U.S. economy.
LONDON, Feb 3 (Reuters) – After abrupt interest rate rises
in India, Turkey and South Africa, investors are now betting
that Hungary and Russia will be the next emerging economies
forced to defend their currencies, even though their finances
look very different.
The three countries that acted last week – including Turkey
which raised its rate by a dramatic 425 basis points – all rely
heavily on foreign capital to power their economies.