EM currencies grows on expectations of the Biden-Putin summit

The weakening of the US dollar in anticipation of a possible summit between the presidents of the US and Russia led to the growth of emerging market currencies. Recently, in the East of Ukraine, there have been more cases of violation of the silence, which must be observed by the Minsk agreements. Media reports of a possible meeting between the two presidents raised hopes that a solution would be found to resolve the sharply aggravated relations between Russia and Ukraine and prevent the invasion of Russian troops into Ukraine. Against this backdrop, emerging market currencies began to strengthen. The corresponding MSCI index rose 0.1%. Before the release of information on the budget of South Africa for the current year, the South African rand fell by 0.3%. At the same time, the Turkish lira grew by 0.3%, its rate was 13.63 liras per dollar. The strengthening of the Turkish national currency is facilitated by the January growth in the number of foreign tourists by 151% compared to the same month of the previous year, which indicates the restoration of the sector of the Turkish economy.

Source: xCritical.com