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Ghosts of taper tantrum to haunt EMFX, stir volatility memories


Vivek MishraVuyani Ndaba
4 minute read
A worker prepares bundles of rupiah bank notes in Bank Mandiri in Jakarta July 9, 2013. REUTERS/Supri/File Photo
Summary
reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/fx-polls?RIC=CNY= yuan poll data
reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/fx-polls?RIC=RUB= rouble poll data
reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/fx-polls?RIC=TRY= lira poll data
reuters://realtime/verb=Open/url=cpurl://apps.cp./Apps/fx-polls?RIC=INR= rupee poll data
BENGALURU/JOHANNESBURG, July 2 (Reuters) - Volatility risks in coming months are high on the radar of emerging market currency investors still familiar with past Fed tightening, a Reuters poll of strategists found, but commodity prices are offering support amid slow vaccination rates. ....

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Ghosts of taper tantrum to haunt EMFX, stir volatility memories: Reuters poll


Ghosts of taper tantrum to haunt EMFX, stir volatility memories: Reuters poll
By Vivek Mishra and Vuyani Ndaba
Reuters
BENGALURU/JOHANNESBURG (Reuters) - Volatility risks in coming months are high on the radar of emerging market currency investors still familiar with past Fed tightening, a Reuters poll of strategists found, but commodity prices are offering support amid slow vaccination rates.
Having more than reversed a pandemic-induced slump and hit a record high last month, the wider index of emerging market currencies fell to over a one-month low after the Fed projected an acceleration to its policy tightening timeline.
Wary that U.S. stimulus could be tapered sooner, in coming months investors may shun the currencies coined the fragile five of Brazil, India, Indonesia, Turkey and South Africa, as they did in 2013 when the Fed tightened rates. ....

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Inflation debate hits emerging markets as Pimco backs economic rebound


Investors are about to get a snapshot of any price pressures building across the developing world the fallout of the unprecedented stimulus that’s been unleashed to revive the global economy.
Heavyweights including Brazil, China and India will report inflation data this week against a backdrop of quickening growth that’s being fueled by months of easy money and fiscal largess. Citigroup Inc.’s inflation-surprise index for emerging markets spiked last month to its highest since 2008, a sign that investors may be underestimating the scale of the resurgence.
Long the scourge of debt holders and a threat to currency stability, accelerating inflation has already forced policy makers in Brazil and Russia to raise borrowing costs. The Czech central bank last week signaled it could follow suit in mid-year, while Turkey’s monetary authority has pledged to keep rates elevated until there is a significant slowdown in price gains. ....

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Inflation debate hits emerging markets


MONEYWEB
app instead?
With Pimco standing firm.
08:26 
Image: Bloomberg
Investors are about to get a snapshot of any price pressures building across the developing world the fallout of the unprecedented stimulus that’s been unleashed to revive the global economy.
Heavyweights including Brazil, China and India will report inflation data this week against a backdrop of quickening growth that’s being fueled by months of easy money and fiscal largess. Citigroup Inc.’s inflation-surprise index for emerging markets spiked last month to its highest since 2008, a sign that investors may be underestimating the scale of the resurgence.
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