35 days ago • Posted by William Ramstein

Equities bounce back helps EM currencies (for now)

There was relief for risk-on trades across the board yesterday as equities rebounded strongly, and those moves also benefited the emerging market currencies. After depreciating sharply in the past couple of weeks, the Brazilian real, South African rand and Turkish lira were all up by over 1% against the USD. If the currencies come under renewed pressure, some think those central banks will need to tighten policy sooner than could be ideal in order to shore up their currencies. Source: MacroMarketsDaily.com