Currencies hit over two-year lows as dollar rules



*

EM stocks at lowest since May 2020

*

Indian rupee at record low as risk aversion, pound collapse lift dollar

*

China's yuan hits 28-month low despite fresh policy step

*

Russian rouble pulls back from two-month high vs dollar

*

Czech consumer confidence falls to new low in September

By Bansari Mayur Kamdar

Sept 26 (Reuters) - Emerging market currencies hit a more than two-year low on Monday, as the U.S. dollar strengthened on its rising safe-haven appeal, while stocks started the week in red on jitters about a global economic slowdown.

MSCI's index of EM stocks .MSCIEF declined 1.4%, while the index for EM currencies .MIEM00000CUS fell 0.6%. Both indexes were headed for their lowest levels since mid 2020.

UK's sterling GBP=D3 crashed to a record low on mounting concerns that the new government's economic plan will stretch Britain's finances to the limit, boosting the safe-haven dollar =USD to 114.58 for the first time since May 2002, before easing to 113.22 against a basket of major peers.

"The dollar is on the run and that is always a challenging thing for the EM space," said Jakob Christensen, head of global macro research at Danske Bank.

"UK's fiscal plans shook markets as this may be replicated in other countries leading to worse fiscal situations and more aggressive central bank hikes in major economies which have indirect implications for emerging markets."

China's onshore yuan touched a 28-month trough, even as the country's central bank announced fresh steps to slow the pace of the currency's recent depreciation.

India's rupee INR=IN , too, hit record lows against the dollar. Traders told Reuters that the Reserve Bank of India likely sold dollars to contain the currency's decline, which has been touching fresh lows for the last three consecutive sessions.

South Africa's rand ZAR= weakened 1% as a firmer greenback, weakness in gold prices and aggressive stance on interest rates by major central banks weighed on sentiment.

The Turkish lira TRY= was also down 0.2%.

The Russian rouble RUBUTSTN=MCX pulled back from a more than two-month high against the dollar in the previous session, as voting continued in referendums that could see four Ukrainian regions annexed by Russia.

"The geopolitical risk around Russia is weighing on neighbouring countries like Poland and Hungary," Christensen said.

Central and Eastern European currencies were mixed against the euro.

Czech crown EURCZK= was flat after data showed consumer confidence touched almost two-decades low in September, as high inflation and surging energy costs bite.

The Hungarian forint EURHUF= slipped 0.2% against the euro ahead of its rate decision on Tuesday where it is expected to deliver another 100 basis point hike. For GRAPHIC on emerging market FX performance in 2022, see Link For GRAPHIC on MSCI emerging index performance in 2022, see Link

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see
Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Rashmi Aich

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Maaaring malugi ang iyong kapital. Maaaring hindi nababagay sa lahat ang mga produktong naka-leverage. Mangyaring isaalang-alang ang aming Pahayag sa Risk.