Emerging Currencies Rise With Stocks as Turkey’s Lira Rallies - Bloomberg

Emerging Currencies Rise With Stocks as Turkey’s Lira Rallies - Bloomberg:



"Emerging-market currencies rallied with stocks after Turkey’s emergency interest-rate increase triggered the lira’s biggest gain since 2008, spurring optimism that central banks will take steps to stem capital outflows.



The lira surged 4.1 percent versus the dollar, while South Africa’s rand advanced 1.2 percent before an interest-rate decision. South Korea’s won jumped the most in four months after data showed the nation’s annual current-account surplus widened to a record. Indonesian shares surged 1.8 percent after Morgan Stanley upgraded the country’s equities.



The MSCI Emerging Markets Index climbed 1.2 percent to 944.90 at 1:27 p.m. in Singapore, poised for the biggest gain since Nov. 18. Turkey more than doubled interest rates to stem capital outflows in a decision announced at midnight local time. It came after India’s surprise rate increase yesterday as a rout in developing-nation currencies helped fuel a $1.87 trillion selloff in global stocks in the week through Jan. 27. The U.S. Federal Reserve ends a two-day meeting today with economists projecting a further cut to stimulus."



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