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.
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.
Some investors are so concerned about the repercussions for Russia should it annex Crimea that even Turkey, where the government is fighting street protests and allegations of corruption, looks like a better bet.
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.
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.