real-time news and commentary for investors
Thursday, Aug 22
Emerging-market currencies continue to be hit
- Emerging-market currencies have continued to suffer losses following the release of the latest FOMC minutes yesterday, which provided little clarity about when the Fed might start tapering its QE program but left the market expecting that it will be next month.
- Ten-year Treasury yields are +2 bps at 2.916%. The recent spike in U.S. debt yields has caused borrowing costs to rise globally, which, along with the rising dollar, has not been healthy for emerging markets with large current account deficits, such as India.
- USD-INR is +0.5% at 65.045 Indian rupees, with the currency hitting a new low of 65.55 earlier.
- USD-TRY +0.4% at 1.9861 Turkish lira, with the currency hitting a new low of 1.9886 earlier.
- USD-IPR +2.1% at 11,050 Indonesian rupiah.
- USD-MYR +0.6% at 3.3102 Malaysian ringgit.
- USD-THB +0.4% at $32.036 Thai Baht.
- ETFs: CEW, AYT, JEM, PGD, ICN, INR