Russias rouble firmed for the first time in five days on Monday as oil prices jumped on hopes of prolonged cuts in output, while emerging market stocks jumped to a more than twoyear high on signs the economic rebound in China was gaining momentum.
The rouble gained 0.9 to 76.90 to the dollar by 0922 GMT after easing last week due to a jump in global coronavirus cases and as data showed a contraction in Russian GDP in the third quarter.
The rouble has had a volatile few weeks, plunging to its lowest versus the euro since late 2014 on the eve of the U.S. election and then posting its biggest oneday gain against the dollar in four years the day after the vote.
Turkeys lira was largely flat ahead of a central bank meeting later this week, where analysts expect a sharp interest rate hike that could ease pressure on the exchange rate and, in turn, on inflation.
Out of the two, Turkey is definitely far more exciting to watch, said Piotr Matys, an emerging markets FX strategist at Rabobank, referring to central bank meetings in Turkey and South Africa.
The lira last week rallied about 11 in its best week in more than 19 years as a major shakeup in the countrys economic leadership raised hopes for more immediate measures to support the battered currency.
The newly appointed governor is fully aware that theres no room whatsoever for him to disappoint the market. I expect a hike to the effect of 500 basis points in the oneweek repo rate, Matys said.
Turkish stocks rose as…