EMERGING MARKETS-Emerging currencies digest central bank decisions

  • Reuters
  • Stock Market News
EMERGING MARKETS-Emerging currencies digest central bank decisions
Credit: © Reuters.

By Karin Strohecker

LONDON, Dec 15 (Reuters) - Emerging currencies strengthened on Friday but some eyed weekly losses as investors digested a deluge of central bank decisions.

The U.S. Federal Reserve's much-anticipated rate hike on Wednesday sounded the starting gun for emerging market central banks to adjust their policies.

Turkey's lira TRY= strengthened 0.7 percent on the day, but was on track for a weekly loss following a 2 percent tumble on Thursday after the central bank delivered a smaller-than- expected hike to the late liquidity window, disappointing markets fretting over inflation at 14-year peaks. peso MXN= gained 0.3 percent, but was on track for a third week of losses despite the country's central bank matching the Fed interest rate rise and signalling it was ready to act again to rein in the jump in consumer prices. rouble RUB= was on track for a weekly gain but treading water ahead of a central bank meeting expected to deliver a key interest rate cut to 8 percent in what would be the sixth rate reduction so far this year. strategist Piotr Matys expected Russia's central bank to continue trimming interest rates in 2018 as long as the rouble stays stable.

"The target for where the policy rate will be when the easing cycle finishes is between 6.5-7 percent, so we are 100-150 basis points from that target," he said.

"One of the challenges for the central bank will be to bring inflation expectations lower, as there is still a wide gap between headline inflation and expectations among households."

South Africa's rand ZAR= was stronger on the day and the week with investors awaiting the outcome of the ruling African National Congress's leadership elections on the weekend.

The party will announce a successor to current president Jacob Zuma as party leader on Sunday following a closely fought and bruising leadership battle. market stocks were nursing losses, with the MSCI benchmark index .MSCIEF 0.5 percent, weighed down by Wall Street's weakness on concerns about the progress of U.S. tax reform.

Hong Kong .HSI and Chinese mainland stocks .CSI300 took a tumble of around 1 percent on the day, but heavyweight South Korea .KS11 chalked up a 0.5 percent gain.

Russian stocks .IRTS .MCX suffered some of the biggest losses of the day, pulled lower by financial stocks .MICEXFNL after the central bank said it would bail out Promsvyazbank, the country's 10th biggest lender by assets. GRAPHIC on emerging market FX performance 2017, see http://tmsnrt.rs/2e7eoml For GRAPHIC on MSCI emerging index performance 2017, see http://tmsnrt.rs/2dZbdP5

For CENTRAL EUROPE market report, see CEE/

For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB )

Emerging Markets Prices from Reuters

Equities

Latest

Net Chg % Chg % Chg

on year

Morgan Stanley (NYSE: MS )

Emrg Mkt Indx .MSCIEF 1115.52

-5.70 -0.51 +29.37

Czech Rep

.PX

1063.34

-2.08 -0.20 +15.38

Poland

.WIG20

2418.61 -16.00 -0.66 +24.16

Hungary

.BUX

38567.96 -48.23 -0.12 +20.51

Romania

.BETI

7606.46 +19.20 +0.25 +7.36

Greece

.ATG

768.16

+0.59 +0.08 +19.35

Russia

.IRTS

1143.76

-9.56 -0.83 -0.74

South Africa

.JTOPI 51072.43 -425.93 -0.83 +16.33

Turkey

.XU100 09200.88 -465.56 -0.42 +39.75

China

.SSEC

3266.15 -26.29 -0.80 +5.24

India

.BSESN 33476.36 +229.66 +0.69 +25.73

Currencies

Latest

Prev

Local

Local

close currency currency

% change % change

in 2017

Czech Rep

EURCZK=

25.69

25.69 +0.03

+5.15

Poland

EURPLN=

4.22

4.22 +0.08

+4.38

Hungary

EURHUF= 313.91

314.15 +0.08

-1.62

Romania

EURRON=

4.63

4.63 -0.06

-2.09

Serbia

EURRSD= 119.20

119.17 -0.03

+3.48

Russia

RUB=

58.86

58.84 -0.04

+4.08

Kazakhstan

KZT=

335.57

335.20 -0.11

-0.57

Ukraine

UAH=

27.65

27.40 -0.90

-2.35

South Africa ZAR=

13.43

13.50 +0.50

+2.24

Kenya

KES=

103.15

103.20 +0.05

-0.76

Israel

ILS=

3.52

3.52 +0.04

+9.43

Turkey

TRY=

3.86

3.89 +0.70

-8.60

China

CNY=

6.61

6.61 +0.03

+5.08

India

INR=

64.15

64.33 +0.28

+5.92

Brazil

BRL=

3.34

3.34 +0.00

-2.65

Mexico

MXN=

19.14

19.15 +0.02

+8.21

Debt

Index Strip Spd Chg %Rtn Index

Sov'gn Debt 11EML EMBIG 315

-1

.03 8 06.32 1

All data taken from Reuters at 09:53 GMT.

Currency percent change calculated from the daily U.S. close at 2130 GMT.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Russian interest rates and rouble

http://reut.rs/2jW6TDs

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