* Russia FX, stocks jump as oil prices climb
* Turkish lira weakens on U.S., EU sanctions threat
* Hungary's forint steady ahead of c.bank meet
By Shashank Nayar
Dec 14 (Reuters) - Russian stocks hit new record highs on Monday, supported by rising oil prices, while the rouble held near its mid-August peak as the dollar weakened broadly ahead of a U.S. Federal Reserve meeting this week.
The rouble RUBUSD=R gained 0.4% to trade at 72.99 per dollar, while Moscow stocks .IMOEX jumped almost 1% as oil prices climbed, pushing Brent LCOc1 back above $50 a barrel, buoyed by hopes that a rollout of coronavirus vaccines will lift global fuel demand. O/R
The first shipments of vaccines were speeding across the United States as part of a mission to inoculate more than 100 million people by the end of March. is definitely growing optimism that global economies will begin recovering from next year as more positive vaccine news flows," said Piotr Matys, FX strategist at Rabobank.
"But there is also the harsh reality that most emerging currencies will struggle in the near-term as virus cases still continue to rise."
The South African rand ZAR= firmed 0.6% ahead of an address by President Cyril Ramaphosa on the government's response to the pandemic, while oil-exporting Mexico's peso MXN= strengthened 0.5%. emerging market currencies got a boost as the dollar traded near a 2 1/2-year low against major peers ahead of a Fed meeting ending on Wednesday where policymakers are expected to increase purchases of longer-dated Treasuries to contain a rise in yields. FRX/
Still, Turkey's lira ZAR= weakened 0.7% as the threat of U.S. and EU sanctions coupled with worries around record coronavirus-related deaths offset data that showed a 10.2% jump in the country's industrial production in October. Hungarian forint EURHUF= held near a one-month high against the euro ahead of a central bank meeting on Tuesday where it is likely to leave interest rates unchanged, but recent declines in inflation may allow it to ease policy early next year. Polish zloty EURPLN= also firmed as the arch-conservative United Poland party decided on Saturday to remain in government despite its opposition to a European Union budget deal, meaning the ruling coalition will keep its majority. currencies rallied last week as EU leaders unblocked a 1.8 trillion euro financial package to help the economy recover from the pandemic-induced recession after reaching a compromise with Poland and Hungary.
For GRAPHIC on emerging market FX performance in 2020, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2020, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.