Emerging Markets Boosted by Interventions as Rate Fears Grow
- Key US data, ECB rate outlook to pressure developing markets
- Poland moves to shore up zloty after week of sharp losses
A money exchange dealer displays foreign currency notes.
Photographer: Asif Hassan/AFP/Getty ImagesThis article is for subscribers only.
Expectations of central-bank interventions are helping to steady emerging-market currencies, even as traders adjust to a higher-for-longer regime for developed market interest rates.
US and European moves to tame inflation have prompted investors to exit some riskier emerging assets this year. But emerging markets’ recent efforts to defend their currencies have put a floor under declines — even as US consumer price index data Wednesday left the door open for additional interest-rate hikes from the Federal Reserve.