Lira, ruble hit 6-month high as dollar swoons

Emerging Market stocks were suffering the effects of a heavy week for major markets like Wall Street and Tokyo, but for currencies the mood remained resolutely upbeat as the dollar’s slump provided them with fresh boost. 

The Russian ruble was up at 64.34 per dollar and set for an 11th week of gains, its longest winning streak in at least three decades, as an ongoing recovery in oil prices pushed it higher ahead of a meeting of the country’s central bank. Russian rates are expected to stay at 11 percent. 

Turkey’s lira, another ‘high beta’ EM currency, was up for a fifth straight day at 2.8045 per dollar. That was its highest since a spike in November 2015, but removing that, the loftiest since last August. 

China’s Central Bank strengthened its daily guidance rate for the yuan too and by the most on the record, reflecting the major shift in dollar this week. 

“We still don’t expect the Federal Reserve to move [U.S. interest rates] any time soon, probably not this year, so its party on for emerging markets,” said Aberdeen Asset Management portfolio manager Viktor Szabo.