EM Currencies Rise as Iran Talks Cut Oil, Rand Leads Gains
Updated
Updated · Bloomberg · Jun 2
EM Currencies Rise as Iran Talks Cut Oil, Rand Leads Gains
3 articles · Updated · Bloomberg · Jun 2
Most emerging-market currencies outside Asia advanced on June 2 as optimism over Iran talks improved risk appetite and pushed oil prices lower.
South Africa’s rand led the gains after central bank Governor Lesetja Kganyago said officials would bring inflation back to the 3% target.
The Hungarian forint and Mexican peso also strengthened, extending the move beyond South Africa as lower energy prices eased pressure on oil-importing markets.
The rally highlights how signs of a possible Middle East deal are rippling through EM assets by reducing geopolitical risk and softening the oil outlook.