Currency News: Currencies of Commodity-exporting Countries in Trouble

Currency News

The currencies of commodity-exporting nations dropped after oil-producing countries failed to reach an accord to freeze output.

The currencies of Canada, Russia and Malaysia weakened after negotiations to freeze supplies in Doha, Qatar, ended up in bottleneck from OPEC and non-OPEC oil producers . Also, Brazil’s currency decreased as the nation’s central bank stepped up efforts to weaken it to keep exports from slumping.

“The lower oil price has hurt sentiment, and that is reflected through financial markets and commodity-exporter currencies,” said Georgette Boele, a currency strategist at ABN Amro Bank NV in Amsterdam. While the weakness will probably last, supply curbs may boost commodity prices within weeks and help support the currencies of commodity-exporting countries, she said.

Those currencies have rebounded in the past three months as crude and other commodities bounced. The revival coincided with a slump in the U.S. dollar on speculation that the Federal Reserve will hold off on raising interest rates for the time being.



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