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.
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.
Jaroslaw Kaczynski ’s foes say his election as Poland’s president would slow efforts to cut the budget deficit. The bigger impediment may be parliamentary elections next year that will keep lawmakers from acting regardless of who wins the presidency, economists say.
The rand slid the most in five months after Finance Minister Pravin Gordhan said South Africa will use higher-than-expected tax revenue to boost purchases of foreign exchange as a means of weakening the local currency.