Sales of structured notes linked to the credit of Russian companies climbed to the highest in three years last month, as investors bet the country’s economy could weather emerging-market turmoil and the crisis in the Ukraine.
The yen and the dollar climbed while commodity and emerging-market currencies weakened with U.S. Secretary of State John Kerry preparing to visit Kiev as Russia seized control of Ukraine’s Crimea region, intensifying one of the most serious standoffs since the Cold War ended.
Emerging-market stocks rose, capping the biggest monthly increase since October, after slower-than-estimated U.S. growth data bolstered speculation the Federal Reserve will keep the pace of economic stimulus.
The euro fell the most in two years versus the dollar after the European Central Bank unexpectedly cut its main refinancing rate to a record-low 0.25 percent to boost growth in the 17-member currency region.
For the best forint forecaster, Prime Minister Viktor Orban’s push to stamp out foreign-currency mortgages is another reason to sell amid record-low interest rates and a government drive to boost local ownership of banks.
The iShares MSCI Emerging Markets Index exchange-traded fund fell, snapping a two-day advance, ahead of the Federal Reserve’s policy statement tomorrow. Turkey’s stocks led world losses amid corruption arrests.