*
EM currencies off 0.3% against a firm dollar, stocks fall0.3%
*
China’s yuan slides as South Korea export data darkensoutlook
*
Hungary c.banker: good chance that inflation peaked inJanuary
*
Czech c.banker: can hold rates if economy develops asexpected
Feb 13 (Reuters) – Emerging market currencies slipped onMonday, extending their sharp losses against a firm dollar aheadof U.S. inflation data later this week, while the Polish zlotyslid against the euro to its lowest level since October.
The zloty fell 0.4% after central banker JoannaTyrowicz said keeping interest rates at current levels is a”mistake”.
Last week, the National Bank of Poland left its maininterest rate unchanged, like regional peers, remaining inwait-and-see mode as it assesses the damage to the economycaused by the war in Ukraine.
“Compared to Europe and the rest of CEE, Poland’s centralbank sounds relatively more dovish,” said Michael Wang, deputyportfolio manager at Mirabaud Asset Management.
Hungary’s forint slipped 0.2% to 387.54 againstthe euro.
There is a good chance that Hungary’s inflation peaked inJanuary, National Bank of Hungary Deputy Governor Barnabas Viragwas quoted saying in a media report.
Meanwhile, the Czech crown edged 0.1% higher afterVice-Governor Jan Frait was quoted saying the Czech central bankcan hold interest rates at current levels if the economydevelops as expected and inflation continues to moderate.
Overall, the MSCI’s index for emerging market currenciesweakened 0.3% against the dollar as marketsawaited key U.S. inflation data on Tuesday for further cues onthe Federal Reserve’s rate hike path.
“Also, the news that the U.S. shot down more balloons overits airspace is raising concerns over geopolitical tensions,”said Wang.
South Africa’s rand slid 0.5% against the dollartracking global market moves, while the Turkish lira wasflat.
Russia’s rouble hovered near its lowest levelsince April at 73.65 against the greenback, extending lossesdespite huge currency interventions by the government.
China’s yuan hit its weakest level in five weeksas data from South Korea compounded concerns about Asia’s exportgrowth.
Stocks in emerging markets slipped 0.3%.
Turkey’s stock index remained suspended until Feb.15 in the wake of last week’s earthquake with death tollclimbing to over 33,000.
Pakistani bonds extended losses even as a Pakistani officialsaid talks between the International Monetary Fund and thecash-strapped South Asian country will resume virtually onMonday after 10 days of face-to-face discussions in Islamabadended without a deal.
Shares of India’s Adani Group companies dropped again withspotlight on the country’s market regulator after sources saidit is set to brief the federal government on its investigationinto the conglomerate’s shelved share sale.(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing bySriraj Kalluvila)
www.marketscreener.com