The ruble , which capped its best year against the central bank’s target dollar-euro basket since before the credit crisis, underperformed major commodity-linked currencies as lower interest rates and the ouster of Moscow’s mayor eroded demand for Russia’s currency.
Traders of Polish interest-rate contracts are overestimating the likely increase in borrowing costs next year as the central bank will seek to avoid higher rates that could spur the zloty’s advance, BNP Paribas SA said.
Investor anxiety that the Hungarian government’s self-described unorthodox economic policies will spread to the central bank with a new Magyar Nemzeti Bank chief named this year are unjustified, BNP Paribas SA said.
BNP Paribas SA, France’s largest bank, closed a trade buying the Turkish lira against the South African rand after making a 10 percent profit in two weeks, said Bartosz Pawlowski, head of emerging markets strategy.
Hungary may have to change policies, such as steps that caused banking losses, to access international aid and avoid more debt downgrades, BNP Paribas SA, Brown Brothers Harriman & Co. and Takarekbank Zrt. said.
Romania is set to win back investors who sold the country’s assets during its political turmoil last month as International Monetary Fund support cuts government bond risk, according to BNP Paribas SA.