Investment strategy Correspondent
Sujata's Feed
Aug 28, 2013

Lira, rupee at forefront as Syria tension pounds emerging assets

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.

Aug 27, 2013

More pain ahead for battered emerging currencies, options show

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
nervousness.

Aug 27, 2013

Syria crisis adds impetus to investor flight for emerging markets

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

Aug 27, 2013

Syria uncertainty feeds into emerging market currency rout

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.

Aug 23, 2013

Cheap emerging markets: bargain basement or falling knife?

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.

Aug 23, 2013

Central Europe sheltered from emerging markets sell-off

WARSAW/LONDON (Reuters) – The currencies of emerging European countries such as Poland and Hungary have dodged the giant selloffs hitting other emerging markets, and their links to a steadily recovering euro zone are likely to keep them insulated.

For years, Europe’s slump and cautious monetary rules have dragged down economic growth in the region, making these countries less exciting for investors than destinations in Asia and Latin America. Now that curse is turning into a blessing.

Aug 22, 2013

Analysis: Central Europe sheltered from emerging markets sell-off

WARSAW/LONDON (Reuters) – The currencies of emerging European countries such as Poland and Hungary have dodged the giant selloffs hitting other emerging markets, and their links to a steadily recovering euro zone are likely to keep them insulated.

For years, Europe’s slump and cautious monetary rules have dragged down economic growth in the region, making these countries less exciting for investors than destinations in Asia and Latin America. Now that curse is turning into a blessing.

Aug 22, 2013

Emerging market sell-off worsens, more pain ahead

LONDON (Reuters) – Heavy selling engulfed emerging markets again on Thursday with more currencies falling prey to fears of higher global borrowing costs and a reduction in cheap cash supplies from the United States.

While the Indian rupee and Turkish lira skidded to new record lows against the dollar and the Indonesian rupiah slumped to fresh four-year lows, currencies such as the Mexican peso and the Korean won that have so far been spared the worst of the recent selloff, are also now feeling the heat.

Aug 21, 2013
via Global Investing

Tapping India’s diaspora to salvage rupee

What will save the Indian rupee? There’s an election next year so forget about the stuff that’s really needed — structural reforms to labour and tax laws, easing business regulations and scrapping inefficient subsidies. The quickest and most effective short-term option may be a dollar bond issued to the Indian diaspora overseas which could boost central bank coffers about $20 billion.

The option was mooted a month ago when the rupee’s slide started to get into panic territory but many Indian policymakers are not so keen on the idea

Aug 21, 2013

Investors, wary of Fed, sell off emerging market assets again

LONDON (Reuters) – The rout in emerging markets gathered pace on Wednesday, extending to the Turkish lira which, with India’s rupee, hit new record lows in a sell off prompted by the expected tailing off of extraordinary U.S. money printing.

The U.S. Federal Reserve publishes the minutes of its most recent meeting later in the day. Investors are hoping for some clarity about the timing of plans to pare, or taper, its $85 billion-a month money quantitative easing program.