3 Feb 2014
Flash: Russia latest example of EM weakness - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ has highlighted Russia as the latest example of increasing EM weakness.
Key Quotes
"Further evidence of economic weakness in emerging markets was even more acute in Russia where the release early this morning of the manufacturing PMI survey for January revealed that business confidence unexpectedly declined further by 0.8 point to 48.0.”
“It was the lowest reading since June 2009 and highlights the ongoing loss of economic growth momentum in Russia. The rouble has weakened sharply in early 2014 with the rouble basket rising by around 6.0% which will help to support economic growth in Russia."
"The CBR remains reluctant to ease monetary policy given that inflation is now likely to remain above their 5.0% target for longer in 2014. In contrast to the ongoing emerging market currency sell off, G10 currencies continue to remain relatively stable with even the yen weakening modestly overnight despite more risk averse trading conditions as the Nikkei 225 equity index declined by around 2.0%."
Key Quotes
"Further evidence of economic weakness in emerging markets was even more acute in Russia where the release early this morning of the manufacturing PMI survey for January revealed that business confidence unexpectedly declined further by 0.8 point to 48.0.”
“It was the lowest reading since June 2009 and highlights the ongoing loss of economic growth momentum in Russia. The rouble has weakened sharply in early 2014 with the rouble basket rising by around 6.0% which will help to support economic growth in Russia."
"The CBR remains reluctant to ease monetary policy given that inflation is now likely to remain above their 5.0% target for longer in 2014. In contrast to the ongoing emerging market currency sell off, G10 currencies continue to remain relatively stable with even the yen weakening modestly overnight despite more risk averse trading conditions as the Nikkei 225 equity index declined by around 2.0%."