The fed’s decision had a negative impact on emerging-market currencies

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For the period from 6 to 13 June, the fed has hit the currencies of developing countries. A hike in interest rates in the United States by 0.25 percentage point to 2% was expected by the market and factored into prices. The strengthening of the dollar was a shock for almost all of the currencies of developing countries, although the force of the impact was different for different countries. Brent crude oil for the week rose in price by 1%, but this growth is almost all currencies are ignored.
The only leader of growth in relation to dollar for the period was Brazilian real (+3,44%), korrektiruete up after a strong fall the previous week. The leader of decrease became South African Rand (-4,5%). Meanwhile, Turkey’s Central Bank decided to raise interest rates from 16.5% to 17.75%, which probably kept the national currency of the country from a sharp fall. And for a week the Turkish Lira fell by only 2.17%. Enough fell heavily to the dollar Mexican peso (-1,68%), Indian rupee (-1,22%) and Kazakhstan tenge (-1,2%). 0.59% and depreciated the Russian ruble. Less than half a percent fell against the dollar and Georgian lari Chinese yuan.
Important events
In Kazakhstan, the Chairman of the National Bank Daniyar Akishev at the government session spoke about the inflation in the country. According to him, in may, annual consumer price inflation in Kazakhstan slowed to 6.2% at year-end consumer inflation is expected at levels of 5-7%. However, while optimistic statements had no impact on the tenge exchange rate.
Forecast
The values of pair dollar/ruble, our new forecast is now at level 62 and 63 rubles per dollar, and the value of the Euro/ruble forecast remains at the level of 73-74 RUB for Euro. At the exchange rate of tenge to dollar change forecast up to 332-337 tenge per U.S. dollar, and tenge exchange rate to the ruble to 5.34 to 5.35 tenge per ruble.
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Natalia Milchakova,
The Deputy Director of analytical Department,
Alpari