Emerging-market stocks rose, driving the regional benchmark index to its longest streak of gains in five months, on speculation China’s interest-rate increases will promote lower-inflation economic growth.
The Czech koruna is poised to weaken 2.2 percent as elections starting today may fail to produce a government with enough support to tackle the 163 billion-koruna ($7.8 billion) budget deficit, according to BNP Paribas SA.
Estonia celebrated its entry into the euro with a midnight fireworks display, shrugging off the sovereign debt crisis rippling through Europe to extend the currency block into the former Soviet Union for the first time.
South Africa’s rand, Israel’s shekel and the Turkish lira will outperform eastern European currencies as investors shift assets to emerging markets less vulnerable to the debt crisis in western Europe, BNP Paribas SA said.
The Polish zloty had its longest streak of declines since August and the forint slipped to the weakest in more than three weeks as Libya’s uprising pushed the price of oil toward $100 a barrel in New York.