EMERGING MARKETS-Turkish lira leads declines in emerging markets FX after dollar rally

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    * Chile's peso slides ahead of weekend elections  
    * Latam stocks underperform broader EM peers

 (Adds comments, bullets, details; updates prices throughout)
    By Shreyashi Sanyal
    Nov 16 (Businesshala) - The Turkish lira led declines among
emerging market currencies on Tuesday against a strong dollar,
while Chile's peso sank ahead of weekend elections and on
sliding copper prices. 
    The lira tumbled 2.3% to a new record low against the
dollar, ahead of an expected Turkish interest rate cut that many
analysts say is unnecessary, while South Africa's rand,
Mexico's peso, Chile's peso and Russia's rouble
 also fell.
    "The lira ... is already on a downward trend and suffering
the dynamics where higher inflation is causing the lira to
weaken and the weakening lira is causing inflation to rise,"
said Ulrich Leuchtmann, head of FX research at Commerzbank in
Frankfurt. 
    "If you don't expect the central bank to come out and put a
halt to this at some point, it becomes a vicious circle."
    MSCI's index of EM currencies fell 0.29% and
was set for its worst session since early September, as the
dollar renewed 16-month highs bolstered by better-than-expected
U.S. retail sales data strengthening the case for faster
monetary policy tightening.      
    Sentiment had been upbeat earlier in the day after a
positive start in talks between the United States and China had
raised hopes of easing tensions and possibly reducing tariffs. 
    Chile's currency fell 1.5%, leading declines among
Latin American units. 
    Eyes are also on weekend presidential elections in Chile
with far-right front-runner Jose Antonio Kast making a rapid
surge in opinion polls. The most likely outcome is a split vote
with main rival Gabriel Boric, leading to a run-off in December.

    Brazil's real fell 0.8%, on returning from a day's
holiday. 
    Data on Tuesday showed surging inflation and higher interest
rates had started to choke economic activity in Brazil. The
IBC-Br economic activity index, a leading indicator of gross
domestic product, fell by 0.27% in September from the previous
month.
    Latam stocks fell, underperforming a broader index of EM
shares. Chile's benchmark index slumped
1.8%, extending losses to a third straight session.  
   
    Latin American stock indexes and currencies at 1951 GMT: 
    
         Stock indexes                 Latest    Daily %
                                                 change
 MSCI Emerging Markets                  1290.02     0.25
 MSCI LatAm                             2138.19    -1.76
 Brazil Bovespa                       104812.78    -1.43
 Mexico IPC                            51077.85    -0.69
 Chile IPSA                             4304.32    -1.78
 Argentina MerVal                      89882.74   -3.351
 Colombia COLCAP                        1336.93    -1.44
                                                        
            Currencies                 Latest    Daily %
                                                 change
 Brazil real                             5.4984    -0.77
 Mexico peso                            20.7072    -0.50
 Chile peso                               811.2    -1.54
 Colombia peso                          3892.57    -0.26
 Peru sol                                3.9861    -0.11
 Argentina peso (interbank)            100.2900     0.00
                                                 
 Argentina peso (parallel)                197.5     1.01
                                                 
 

 (Reporting by Susan Mathew and Shreyashi Sanyal in Bengaluru;
Additional reporting by Karin Strohecker; Editing by Nick Macfie
and Grant McCool)
  
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