The lira surged the most among emerging markets and Turkish stocks rallied as investors wagered victory for Prime Minister Recep Tayyip Erdogan’s party in local elections may arrest foreign capital outflows.
The dollar may rise after today’s meeting of the U.S. Federal Open Markets Committee, as policy makers “open the door” to further monetary easing without taking any immediate action, said Henrik Gullberg , a currency strategist at Deutsche Bank AG in London.
HSBC Holdings Plc, which gets more than half of its revenue from emerging markets, says it’s time to start buying their currencies after a selloff pushed exchange rates to their lowest levels since 2009.
Norway’s krone will gain further as investors “desperate” for protection against a deepening European debt crisis turn to one of the few haven markets that isn’t overvalued, said Deutsche Bank AG, the world’s biggest currency trader.
The pound rose for a fourth week against the dollar as it advanced to the highest in more than two years after data from gross domestic product to mortgage approvals added to signs U.K. economic growth is accelerating.