Investment strategy Correspondent
Sujata's Feed
Feb 7, 2014

Ukraine hryvnia rises after capital curbs, most markets firm

LONDON (Reuters) – Ukraine’s hryvnia jumped almost 2 percent on Friday against the dollar and forward markets softened depreciation bets after the central bank imposed market curbs to stem runaway depreciation in the currency.

Broader emerging markets also firmed, with stocks up for the second straight day and currencies flat to stronger against the dollar, but trade was thin pending U.S. jobs data that can shift expectations about the pace of the Fed’s stimulus withdrawal.

Feb 3, 2014

Ukraine hryvnia’s steady slide may spook household depositors

LONDON, Feb 3 (Reuters) – Ukraine’s hryvnia currency could
slide further after losing more than 5 percent in January if its
weakness shakes households’ faith in the safety of their bank
deposits and prompts them to seek refuge in dollars.

The central bank appears to have eased its tight grip over
the hryvnia since mid-January, allowing it to tumble as
much as 2.5 percent against the dollar last Friday – the
currency’s biggest one-day fall since October 2009.

Jan 31, 2014

Sell-off resumes despite central banks’ support

RIO DE JANEIRO/LONDON (Reuters) – Investors resumed their flight from emerging markets on Friday as the latest round of central bank actions proved insufficient to offset concern about rising economic and political risks in many developing countries.

Currencies, stocks and bonds fell in developing nations, from Asia to Europe to Latin America, with the Russian rouble sliding 1 percent to five-year lows. The turmoil also appeared to engulf central European countries such as Poland and Hungary, which fared relatively well in the first sell-off phase earlier this month.

Jan 31, 2014

Fresh turbulence drives down currencies, bonds again

LONDON (Reuters) – Fresh waves of turbulence engulfed emerging markets on Friday, with a renewed slide in the Russian rouble and a sharp rise in bond yields across the board despite policymakers’ efforts to staunch the bleeding.

Signs grew that stress is increasingly spreading to central European countries such as Poland and Hungary, which fared relatively well in the first sell-off phase earlier this month.

Jan 31, 2014

Steady after rollercoaster week but pressure still on

LONDON, Jan 31 (Reuters) – Emerging markets steadied in
holiday-thinned trade on Friday, with currencies such as the
rouble and lira trading just off multi-year lows after dramatic
central bank action to counter the biggest sell-off in years.

Many markets in Asia were closed for the lunar New Year
holidays, cutting trade volumes. MSCI’s benchmark equity index,
of which China comprises a fifth, traded just off 4-1/2 month
lows though stock markets in Russia and Turkey were
almost 1 percent lower .

Jan 30, 2014

Growth, investment at risk from emerging markets rate hikes

LONDON (Reuters) – A growth-crushing downward spiral looks imminent for emerging markets, threatening to turn back the tide of foreign investment that flooded into developing countries on the premise of fast economic expansion.

Countries in Asia, Latin America and emerging Europe are being forced to raise interest rates sharply to stave off currency collapses and a wholesale exodus of foreign investors. Turkey, India and South Africa jacked up rates this week, heaping pressure on others to follow suit.

Jan 30, 2014

Analysis: Growth, investment at risk from emerging markets rate hikes

LONDON (Reuters) – A growth-crushing downward spiral looks imminent for emerging markets, threatening to turn back the tide of foreign investment that flooded into developing countries on the premise of fast economic expansion.

Countries in Asia, Latin America and emerging Europe are being forced to raise interest rates sharply to stave off currency collapses and a wholesale exodus of foreign investors. Turkey, India and South Africa jacked up rates this week, heaping pressure on others to follow suit.

Jan 29, 2014

Turkish rate hike boost fades, focus on S.Africa c.bank

LONDON, Jan 29 (Reuters) – The boost to Turkey’s lira from a
round of huge interest rate hikes quickly faded on Wednesday,
while the rand fell as the market focus switched to monetary
policy decisions due later in the day in South Africa and from
the U.S. Federal Reserve.

Turkish debt insurance costs fell and the country’s recent
dollar bond rallied after the central bank jacked up all of its
interest rates late on Tuesday, in a move investors saw as long
overdue.

Jan 29, 2014

Turkish rate hike boost starts to fade, S.Africa faces pressure

LONDON, Jan 29 (Reuters) – Turkey’s lira posted its biggest
one-day gain in more than five years on Wednesday after huge
interest rate hikes, but the impact was already starting to
fade, while South Africa now also faces pressure to tighten
policy.

Turkish debt insurance costs slumped and its sovereign bond
yield premia to U.S. Treasuries fell 20 basis points.

Jan 28, 2014

Emerging markets as vulnerable as ever to contagion

LONDON/NEW YORK/SINGAPORE, Jan 27 (Reuters) – Emerging
markets may be unrecognisable from the small and fragile
economies that fell like dominoes 15 years ago, but they are
just as vulnerable today to the same sort of indiscriminate
selling when investor panic sets in.

As even the relatively robust economies of Mexico and Poland
now feel the heat from disparate flashpoints from Turkey to
Argentina, there are growing doubts that emerging markets have
built any immunity to such contagion.