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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMERGING MARKETS
- In the FX market, the Japanese Yen remains the ultimate safe haven that generally appreciates significantly when volatility rises.
- Hence, as price volatility and uncertainty reached a peak during the March 2020 panic, we look at the performance of EM FX currencies relative to the Yen in the past year to see which EM exchange rate has reacted positively to this risk-on environment.
- As expected the TRY and BRL appear at the bottom of the table:
- TRYJPY is down 16.5% in the past year as the Lira was very sensitive to the increase in 'staff turnover' at the CBRT last month.
- In addition, political uncertainty continues to weigh on the BRLJPY, which is down 8.2% in the past year.
- The rest of the EM currencies (to the exception of RUB down 2.1%) are all up against the JPY, with ZAR coming up at the top of the table up 26% YoY, mainly driven by the rise in real yield differential.
- CEE Currencies: CZK, HUF and PLN are up 15.6%, 9.9% and 9.5%, respectively, against the JPY in the past year.
Source: Bloomberg/MNI
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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