Schedule ruble to dollar at intervals of 1 hour
The Russian ruble edged higher on Friday ahead of a widely anticipated change in interest rates as tensions with Ukraine eased while most emerging market currencies fell, although gains are expected in the third week of the month amid continuing dollar weakness.
The ruble rose about 0.2% to a monthly high of 75.0350 per dollar. It jumped 1.6% Thursday after Russia announced its withdrawal from its borders with Ukraine, apparently in response to calls for an end to the military build-up that has alarmed the West.
Russian stocks fell 0.3%. MSCI Emerging Market Equities Up 0.6%
Now investors were awaiting the decision of the central bank of Russia on the rate at 10:30 GMT. Interest rates are expected to be raised by 25-50 basis points amid growing calls from the government to curb inflation.
“The dynamics of inflation reflects the continuing increase in price pressures. At a meeting of directors on March 19, the central bank completed the easing cycle and raised the discount rate by 25 basis points to 4.5%; we expect another 50 basis point rally, followed by a similar rally at the next meeting, ”said analysts at TS Lombard.
“The CPI is likely to fall in April due to base effects, before resuming its upward trajectory.”
The MSCI Emerging Markets Index rose 0.1% on Friday and should post a third straight week of gains as weakness in the dollar and Treasury yields made risk-oriented assets more attractive.
But a new wave of COVID-19 cases in developing countries has wreaked havoc on emerging market assets. Bank of America data on streams showed that investors withdrew $ 1.3 billion from emerging market equities in the week prior to Wednesday.
The Indian rupee is losing 0.4% for the week, as a record high level of COVID-19 infection in the country has undermined its risky assets with the prospect of taking additional measures of social isolation.
The Turkish Lira was the worst currency in Europe, the Middle East and Africa this week, with a decline of 3.4% over the week. It fell 0.3% on Friday. Children’s Day is celebrated in the country today. Lyra continues to bargain weakly.
Lyra has come under pressure over the possibility of further deteriorating relations between Washington and Ankara, as media reports said the United States was preparing to officially recognize the massacre of Armenians by the Ottoman Empire during World War I as an act of genocide.
In Central Europe, the Hungarian forint rose 0.1% against the euro amid optimism about plans to reduce some viral restrictions as vaccinations approached 40% of the population.