Currency News: Emerging Markets React to Global Politics
Currency News
Recently, the US bombarded a Syrian air base. Moreover, the US also decided to move their naval ships to the Western Pacific Ocean, near the Korean Peninsula. The aim was to show their presence to North Korea. Indeed the plans of the country encompass an advancing weapons program. Thus, investors reacted anxiously and emerging markets incurred losses. This Monday, currencies are weakening against the dollar (Reuters.com).
Emerging stocks almost reached their four-week low with a loss of 0.5%. Hefty losses of Russian currency dragged these figures down. In comparison, the dollar is at its strongest point since mid-March. South Africa’s borrowing costs are increasing. At the end of February, South Korea has been accused of currency manipulation. This comes after former president Park Geun-hye resigned after being suspected of corruptions. As a result of these factors, South Korea’s currency dropped like every other emerging currencies do.
Market seems to be quite nervous about global politics move. While Trump keeps its position, the next few days should give us more information on the sequence of operations.
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