Union workers demonstrate while legislators debate a bill to put a stop on public services taxes raising in Buenos Aires, on May 9, 2018.

Eitan Abramovich | AFP | Getty Images

Union workers demonstrate while legislators debate a bill to put a stop on public services taxes raising in Buenos Aires, on May 9, 2018.

Emerging market currencies took a knock last week, coming under pressure as the dollar firmed, among other idiosyncratic factors.

On Friday, the Argentine peso closed at a record low of 23.35 per dollar even though the country has approached the International Monetary Fund for aid. The currency has dropped some 23 percent this year despite the central bank raising rates to 40 percent earlier in the month.

Elsewhere, the Turkish lira sank to record lows last week amid concerns of soaring inflation. Turkish President Tayyip Erdogan on Friday referred to interest rates as “the mother and father of all evil,” Reuters said.

The MSCI Emerging Market Currency Index has erased most of its gains made this year, last standing at 1,691.24 at the end of Friday trade.

Ahead, central banks in Indonesia and Brazil are slated to announce interest rate decisions later in the week.

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