Emerging-market currencies are recovering after their worst quarterly performance in seven years

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Emerging-market currencies are recovering after their worst quarterly performance in seven years

 

 05 Jul 2018 09:51 PM

Forex : Emerging markets managed to recover during Thursday's trading, with cautious recovery for investors following the presidential elections in Turkey and Mexico.

On the other hand, the JPMorgan Emerging Markets index rose 0.6 percent to 64.72 points after falling to a two-and-a-half-year low on Monday and its worst quarterly performance in nearly 7 years in the second quarter of 2018.

The Turkish lira led gains in emerging market currencies, after rising 1.5% against the US dollar during trading on Tuesday with comments by Turkish Prime Minister, which suggests that the reduction of interest rates and inflation will be a priority for the new administration in the country.

In late June, Turkey witnessed early elections that enabled President Recep Tayyip Erdogan to garner votes in favor of him with a 53% support vote.

While  the Mexican peso was the second best performer in the day after climbing 1.1% against the dollar to reap gains for the third day in a row.

Mexico's currency continues to gain after Andres Manuel Lopez won 53 percent of the vote in the country's presidential election earlier this week.

Mexico's local currency has received comment from Finance Minister Carlos Ursua that the next administration will respect the independence of the central bank and will finance social projects by reducing the salaries of bureaucrats and fighting corruption.

The Turkish lira against the US dollar was 17% in the first half of 2018 while the Mexican peso was down 1.4% against the green card during the same period.

The JPMorgan Emerging Markets Index fell 9% in the three months to June, the biggest drop since the third quarter of 2011.