Investors who bet on lira bonds using the carry trade this month are making the region’s third- biggest returns as speculation mounts the Federal Reserve will delay the start of scaling back monetary stimulus.
The Swiss central bank’s decision to cap the appreciation of the nation’s currency against the euro may fall short of helping eastern European borrowers repay mortgages denominated in francs and get them to spend.
The zloty retreated, snapping its longest winning streak since November, as a technical indicator signaled the Polish currency was overbought after appreciating to a nine-month high on interest-rate increase speculation.
Hungary’s unexpected increase of the benchmark interest rate to 5.5 percent from a record-low 5.25 percent may have been prompted by government plans to interfere in monetary policy, said Nigel Rendell , a senior emerging-market strategist at RBC Capital in London.
Bronislaw Komorowski fell short of an absolute majority in the first round of Poland’s presidential election, setting up a runoff with Jaroslaw Kaczynski , brother of the late head of state, exit polls show.