EMERGING MARKETS – Belarusian bonds fall amid mounting tensions; Emerging equities slide


Band Susan Mathew

May 24 (Reuters)Belarusian bonds fell on Monday amid growing criticism from Western countries over the forced landing of a flight, while most other emerging market currencies gained against a weaker dollar.

In what has been described by some EU leaders as a hijacking, an airliner was suddenly hijacked to Minsk, escorted there by a MiG-29 fighter jet on what turned out to be a fake bomb alert. During his disembarkation, the authorities took journalist Roman Protasevich into custody.

EU leaders are expected to discuss additional sanctions against Belarus at a summit later today.

Belarusian ruble BYN = lost 0.3% against the greenback, while sovereign dollar bonds extended as 2030 bonds fell by less than 2 cents.

“It will be interesting to see if there is any indirect implication on Russia’s relations with the EU and the United States. It could increase tensionsSaid Cristian Maggio, head of emerging markets strategy at TD Securities.

Rising oil prices supported currencies of Russian crude exporters RUB = and Mexico MXN = with the Latin American currency rising slightly after a final sliding session, as investors considered possible replacements for the current central bank chief. OR

With a weaker dollar boosting gains for most other emerging market currencies, the Turkish lira TRY = increased by 0.4%.

South African Rand ZAR =, which rallied on central bank tightening rhetoric last week, fell 0.2%.

Rating agencies S&P and Fitch confirmed South Africa’s sovereign rating and outlook on Friday, citing a pickup in near-term economic performance and improving public finances.

“The rand remains one of those currencies that have rebounded well beyond expectations,” Maagio said.

“The rand is extremely overvalued and any correction is absolutely justified by the macroeconomic situation, the risks of the country and even in relative terms, there are other emerging countries in much better shape than South Africa.”

The dollar .DXY slipped as minutes from the US Federal Reserve’s April policy meeting, released last week, showed that a significant minority of policymakers wanted to discuss cutting bond purchases. Inflation readings in the United States later in the week will serve as a guide for monetary policy.FRX /

Emerging market equities .MSCIEF 0.2% decrease with Hong Kong .HSI and South Korean stocks .KS11 weighing the most.

For GRAPHIC on the performance of emerging market currencies in 2021, see http://tmsnrt.rs/2egbfVh

For GRAPHIC on the performance of the emerging MSCI index in 2021, see https://tmsnrt.rs/2OusNdX

For TOP NEWS in emerging markets

For the CENTRAL EUROPE Market Report, see EEC /

For the TURKISH market report, see .IS

For the report on the Russian market, see RU / RUB

Belarusian dollar bond 2030https://tmsnrt.rs/3vgOwvy

(Reporting by Susan Mathew in Bengaluru; Editing by Giles Elgood)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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