LONDON, Sept 6 (Reuters) – Newly cheap currencies may soon
start to boost emerging markets’ exports but for many that will
only soften the bigger blow of imported inflation and the higher
interest rates needed to stabilise their exchange rates.
Currencies from the Indian rupee to the Brazilian real have
lost 12-20 percent of their value against the dollar this year
in a rout that has wiped billions of dollars off stock indices
and put investors to flight right across emerging markets.
LONDON, Sept 5 (Reuters) – The Indian rupee’s 1.5 percent
rebound led emerging markets broadly higher on Thursday but the
growing likelihood of U.S. stimulus rollback dampened gains and
Polish assets were dented by a controversial pension reform
The rupee’s gains were driven by moves from Indian officials
to deal with the spillover from the Fed’s plans to reduce its
bond buying, while markets were also watching a meeting of the
G20 bloc of world powers for measures to combat the currency
LONDON, Sept 4 (Reuters) – Default insurance costs for a
“Fragile Five” of emerging economies have rocketed since early
May, reflecting how investors are discriminating between
countries reliant on foreign capital and their more robust
In the four months since the U.S. Federal Reserve first
hinted that its monetary stimulus may soon be reined in,
five-year credit default swaps (CDS) for Brazil, Turkey and
Indonesia have more than doubled, the following graphic shows:
LONDON, Sept 4 (Reuters) – Central bank action lifted some
emerging market currencies off lows on Wednesday but higher U.S.
yields and the likelihood of military action against Syria kept
the sector under pressure.
Emerging stock markets were flat after Tuesday’s
U.S. manufacturing data supported the view that the Federal
Reserve would start rolling back stimulus at its mid-September
LONDON, Sept 3 (Reuters) – Emerging market assets posted
modest gains on Tuesday after data reinforced evidence of
economic recovery in most parts of the world but in India,
Indonesia and Turkey currencies and stocks lost more ground.
While markets were rattled by reports of missile launches in
the eastern Mediterranean, purchasing managers’ surveys for
August have underlined growth prospects for the global economy.
Stronger Chinese services activity added to robust manufacturing
data released earlier this week.
LONDON (Reuters) – Emerging stocks, bonds and currencies took another hammering on Wednesday as mounting expectations of Western action against Syria pushed up oil prices and drove investors to seek shelter in dollar assets.
The United States and its allies appeared to be gearing up for a military strike against Syria, perhaps within days, as punishment for last week’s chemical weapons attacks which they have blamed on President Bashar al-Assad’s government.
LONDON, Aug 27 (Reuters) – Emerging market currencies such
as the Indian rupee and the Turkish lira have plunged to record
lows against the dollar and trends in the derivatives market
indicate little respite ahead.
One-month implied volatility, a gauge of expected swings in
some emerging market currencies and derived from options prices,
has jumped to its highest in years, reflecting investor
LONDON, Aug 27 (Reuters) – The Indian rupee and Turkish lira
tumbled to new record lows on Tuesday as investors’ headlong
flight out of emerging markets gathered pace with added impetus
from uncertainty over Western military action against Syria.
A number of other emerging currencies hit multi-year lows
even though U.S. Treasury 10-year yields, which such currencies
tend to track, were off two-year highs. The currency losses also
led to an exit from emerging equities, which fell 1.8 percent
LONDON, Aug 27 (Reuters) – Emerging currency losses deepened
on Tuesday, pushing Turkey’s lira to a fresh record low against
the dollar as fears of Western military action against Syria
added to the flight from riskier assets.
It came as a number of emerging currencies hit multi-year
lows even though U.S. Treasury 10-year yields, which such
currencies tend to track, were off two-year highs.
LONDON, Aug 23 (Reuters) – Emerging markets are looking very
cheap and the beaten-down prices could be a solid base for
future returns, but funds should be prepared for more short-term
losses if they take the plunge.
Stocks, bonds and currencies across the developing world are
suffering a rout on a scale not seen for years. Asset price
valuations look dirt cheap – versus emerging markets’ own
history and also possibly against their future prospects.