EMERGING MARKETS-Czech crown scales Feb highs after hot inflation surprise
The Czech crown outpaced regional peers on Monday following a hotter-than-anticipated inflation reading, while global focus remained on a U.S. consumer prices reading later in the week to gauge whether the Federal Reserve could cut rates anytime soon. The Czech crown appreciated 0.4% against the euro, touching an over three-month high.
![EMERGING MARKETS-Czech crown scales Feb highs after hot inflation surprise](https://devdiscourse.blob.core.windows.net/imagegallery/27_06_2019_18_33_56_2660097.png)
The Czech crown outpaced regional peers on Monday following a hotter-than-anticipated inflation reading, while global focus remained on a U.S. consumer prices reading later in the week to gauge whether the Federal Reserve could cut rates anytime soon.
The Czech crown appreciated 0.4% against the euro, touching an over three-month high. Headline inflation in the country jumped much more than expected in April, rising to the upper end of the central bank's tolerance range and pointing to a slower pace of interest rate cuts. Poland's zloty rose 0.1% ahead of the release of the minutes from its central bank's April meeting, in which it had held rates steady at 5.75%.
Poland's central bank may consider rate cuts in early 2025, its governor said on Friday. The Romanian leu held its ground to trade at 4.97 per euro ahead of a central bank decision later in the day, where it is widely expected to cut lending costs by 25 basis points to 6.75%.
"The meeting comes ahead of the April CPI data. Headline likely eased further to 6.5% Y/Y in April but that's still well above CEE4 peers," Societe Generale strategists noted. Hungary's forint lagged local peers, dipping 0.3% against the euro after rising for the last three sessions.
Equity bourses in the region were also rising early on, with indexes in Poland, Czech Republic and Romania up around 0.4% each. South Africa's rand appreciated 0.3% against the dollar, touching its highest level in over four months, while shares in Johannesburg added 0.2%.
As of 0850 GMT, MSCI's gauge for emerging market stocks advanced 0.5%, its highest level in over 23 months, while an index for currencies was flat. Both indexes had logged their third successive weekly gain last week. Focus will remain on a consumer prices reading in the United States on Wednesday, a crucial metric to gauge whether the Fed would cut interest rates anytime soon.
Later in the week, rate decisions in the Philippines and Egypt, along with inflation readings in Poland, Romania and Argentina are some of the key events in emerging markets globally. HIGHLIGHTS:
** Israeli forces step up attacks on Gaza's Jabalia camp and Rafah ** Philippine coast guard will block China reclamation at disputed shoal, official says
** Pakistan's benchmark share index touches 74,000 points, at all-time high - website For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see For TURKISH market report, see
For RUSSIAN market report, see
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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