The third-highest local-currency yields aren’t enough to lure Turks, who are putting record amounts of cash into dollar deposits on concern the lira is vulnerable in the run-up to presidential elections.
India’s strongest electoral mandate in 30 years puts Narendra Modi in a position to pass measures to bolster Asia’s third-biggest economy, spurring optimism it will lead a recovery among the biggest emerging markets.
Russia’s currency is gaining the most in seven months and the cost to protect government debt payments is tumbling as the rising price of oil lifts confidence in the economy of the world’s biggest energy exporter.
The selloff that sent Turkish local- currency debt plunging five times more than emerging-market peers last year is showing few signs of easing, amid a standoff between Prime Minister Recep Tayyip Erdogan and the judiciary.
India’s central bank said foreign funds that have sold offshore derivatives of local stocks and bonds must get their customers’ approval to hedge currency risk on the underlying onshore investments. The rupee rebounded.
China will probably widen the yuan’s trading band within the next three days after central bank Deputy Governor Yi Gang signaled policy makers will loosen control over the currency, according to UBS AG.
Indian policy makers are urging citizens to resist buying gold and boosting scrutiny of speculative currency trades after import curbs and dollar sales failed to stem the world’s biggest currency loss.