The yen and dollar gained against most emerging-market currencies as the Federal Reserve continued to trim monthly bond buying that has propped up global asset prices.
New Zealand’s dollar extended a decline versus the greenback as the central bank held interest rates steady after Governor Graeme Wheeler said in December he expected borrowing costs to rise in the first half of 2014. Developing-economy currencies fell earlier as South Africa’s central bank joined Turkey in raising its benchmark interest-rate in moves that failed to reassure investors. Russia’s ruble extended its slump to 13 days and Hungary’s forint weakened.
“From the point of view of emerging markets, the Fed has just said ‘hasta la vista, baby,’” Steven Englander, global head of Group of 10 foreign-exchange strategy at Citigroup Inc., wrote in an e-mail. “There is modest disappointment in” riskier currencies.
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by marketpulsefxstaff (see all)
- Oil Remains Near Multi-Month Lows - 6 August 2015
- U.S. Dollar Higher on Recent Data - 6 August 2015
- Greece’s PM Tsipras: Loan Deal with Lenders Close - 6 August 2015