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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.
EM FX
- This year, the USD has been broadly stronger against most of the currencies despite a rising number of EM central banks hiking rates to curb the inflationary pressures.
- Not surprisingly, the TRY is the worst performer this year, down nearly 20% against the USD, amid rising political and economic uncertainty, especially after the CBRT decided to cut its benchmark rate by 1% last month to 18%, which sent the Lira to new all-time lows.
- It is interesting to see that the ZAR is nearly unchanged against the USD this year despite a 'quiet' SARB, while the CLP is down over 13% even though Chile central bank has raised rates by 225bps (the third most 'aggressive CB in the EM world).
- High real interest, strong current account have been strong drivers of ZAR, in addition to the fact that the rand is also a 'risk on' currency that generally performs well in periods of low volatility.
- The best performing currency in the EM world has been the RUB, up over 4% this year against USD, which has mainly been driven by the firm trend in oil prices.
Source: Bloomberg/MNI
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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