23.05.2014 - EM currencies benefit as investors return
A year after Ben Bernanke’s first mention of tapering triggered a panic in emerging markets, a rush back into higher-yielding assets is allowing central banks to scale back measures put in place to support their currencies in the worst of the sell-off. On Thursday, Turkey’s central bank cut its main interest rate, citing “lessening uncertainty” and an improvement in Turkey’s risk premium indicators. Although the cut came as a surprise, with some analysts worrying that the central bank was pandering to pre-election political pressure in the face of persistent inflation, the lira strengthened 0.5 per cent to 2.0860 against the dollar............................................Full Article: Source
Print