Emerging-Market Currency Bulls Hit Snag as Policy Risks Pile Up
- Philippine peso, Thai baht, Turkish lira lead declines
- Rate differentials heighten disadvantage: SMBC Nikko
Customers at a market in the Makati district of Manila, the Philippines.
Photographer: Veejay Villafranca/BloombergThis article is for subscribers only.
A burgeoning comeback in emerging-market currencies is encountering policy-related hurdles, with central banks in Asia and Turkey facing pressure to cut rates while its peers tighten to combat rising inflation.
The Philippine peso and Thai baht led declines in the developing world on Thursday as the spread of the delta strain fueled speculation for monetary easing. In Turkey, the lira extended its worst three-day slide since June, after President Recep Tayyip Erdogan’s latest call for lower interest rates.