Emerging Currencies Advance as Weak U.S. Data Offsets BOJ Fizzle
- Sovereign-bond premiums narrow in July by most in four months
- Stocks slip as declines in Asia offset gains in eastern Europe
Policy Decision: Did the BOJ Do Enough?
Emerging-market currencies rose, extending their biggest year-to-date rally since 2011, as weaker-than-forecast U.S. economic reports buoyed optimism that central banks will extend looser monetary policies, supporting demand for riskier assets.
A gauge of developing-nation exchange rates extended an advance after data showed the U.S. economy expanded less than estimated in the second quarter and companies held back new investments. The South African rand and Brazilian real led gains. Russia’s ruble reversed a retreat. The MSCI Emerging Markets Index slipped as equity declines in Asia spurred by disappointment that the Bank of Japan didn’t go far enough to expand stimulus offset gains in eastern Europe and Africa.