Rate-Hike Bets Offer Cushion After Emerging-Market Currency Rout
- Turkey and Brazil may raise rates, while Russia, Taiwan hold
- Goldman says tighter policy could support EM currencies
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Emerging-market currencies could catch a breather following their biggest four-week slide in more than a year as investors bet on a more hawkish tone from central banks in the developing world.
Turkey and Brazil may deliver the Group of 20’s first rate hikes in 2021 this week, potentially lending support to two currencies caught in the crosshairs amid surging U.S. Treasury yields. In Washington, the Federal Reserve is expected to leave borrowing costs unchanged, though traders will parse any comments that may suggest concern over the recent bond-market volatility.