Emerging Currencies Erase February Losses as Ruble Rises on Oil
- Argentine peso falls after government accord with holdouts
- Chinese stocks slide before central bank eases reserve ratio
Where Are Emerging Markets Headed?
Emerging-market currencies erased a monthly loss as Russia’s ruble and South Africa’s rand gained with oil, while the rupee advanced on optimism India will stick to fiscal targets. Argentina’s peso closed at a record low against the dollar after the government settled a lawsuit with creditors over its 2001 default.
A gauge of 20 exchange rates had its first monthly gain since October. The ruble rose as hedge funds increased bets the Russian currency will strengthen. The rupee advanced with local bonds after Indian Finance Minister Arun Jaitley said he would maintain his goal for the budget shortfall in the year beginning April 1. The lira strengthened after Turkey retained its investment-grade status. Shanghai-traded shares slid before China’s central bank cut banks’ cash reserve ratio. The stimulus measure buoyed Brazilian assets as it improved the outlook for raw materials.