{"id":546316,"date":"2022-05-11T03:57:53","date_gmt":"2022-05-11T03:57:53","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/05\/11\/emerging-market-currencies-see-biggest-losses-since-2020\/"},"modified":"2022-05-11T03:57:53","modified_gmt":"2022-05-11T03:57:53","slug":"emerging-market-currencies-see-biggest-losses-since-2020","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/05\/11\/emerging-market-currencies-see-biggest-losses-since-2020\/","title":{"rendered":"Emerging-market currencies see biggest losses since 2020"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-09\"><\/a> <strong>EM currencies see biggest losses since 2020: <\/strong>Emerging-market currencies are suffering as investors pull out of risk assets in response to rising interest rates in the US and the economic slowdown in China, according to the <a href=\"https:\/\/www.ft.com\/content\/086b5f4a-59f9-42d0-85c1-44d4f60cf9b0\">Financial Times<\/a>. The MSCI Emerging Markets Currency Index dropped over 4% since the beginning of April, the largest fall since the onset of the pandemic in early 2020. The sell-off comes as the Federal Reserve embarks on its most aggressive tightening cycle in decades, strengthening the USD and pulling money out of risky EM assets and into the US financial system.<\/p>\n<p><strong>The same factors are weighing on EM debt<\/strong>, which JPMorgan strategists say are at the \u201cmercy\u201d of Fed policymakers. The asset class has seen USD 4 bn in net outflows since the middle of last month while a JPMorgan gauge of EM bonds has slumped 16% so far this year, with rates being responsible for \u201cmost of the losses,\u201d the investment bank said. \"The external and fundamental backdrop has become increasingly difficult for EM sovereigns,\" they said. \"The covid lockdown in China poses further downside risks.\"<\/p>\n<p><strong>\u201cWhat downturn?,\u201d asks the Gulf IPO market:<\/strong> The world\u2019s biggest asset managers are heading to the Gulf to get a piece of the region\u2019s <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/bdd8bf22-5ae2-4aa6-90d7-2eb0e664789d\">red-hot IPO market<\/a>, where companies are capitalizing on the surge in oil revenues and selling shares to the public, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-05-10\/blackrock-to-vanguard-global-funds-rush-to-middle-east-ipo-boom\">Bloomberg<\/a>reports. Middle Eastern companies have traditionally sought listings in more developed markets in the US and UK, but investors are increasingly being drawn to exchanges in the region as the volume of IPOs rises while offerings slow abroad. Two of the world\u2019s biggest asset managers, BlackRock and Vanguard, both bought into Dubai Electricity & Water Authority\u2019s IPO, which raised USD 6.1 bn last month.<\/p>\n<div class='stock-ticker-panel'>\n<table class='table stock-ticker-table table-striped markets-table'>\n<tbody>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>EGX30 <\/strong><\/p>\n<\/td>\n<td>\n<p>10,811<\/p>\n<\/td>\n<td>\n<p>-0.9% (YTD: -9.5%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD (CBE)<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 18.44<\/p>\n<\/td>\n<td>\n<p>Sell 18.53<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>USD at CIB<\/strong><\/p>\n<\/td>\n<td>\n<p>Buy 18.45<\/p>\n<\/td>\n<td>\n<p>Sell 18.53<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-none'>\n<td class='td-list-none'>\n<p><svg class='e-icon e-TypeMarkets'><use xlink:href='#e-TypeMarkets'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Interest rates CBE<\/strong><\/p>\n<\/td>\n<td>\n<p>9.25% deposit<\/p>\n<\/td>\n<td>\n<p>10.25% lending<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Tadawul<\/strong><\/p>\n<\/td>\n<td>\n<p>13,509<\/p>\n<\/td>\n<td>\n<p>-2.2% (YTD: +19.8%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>ADX<\/strong><\/p>\n<\/td>\n<td>\n<p>9,915<\/p>\n<\/td>\n<td>\n<p>-0.9% (YTD: +16.8%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>DFM<\/strong><\/p>\n<\/td>\n<td>\n<p>3,598<\/p>\n<\/td>\n<td>\n<p>-0.7% (YTD: +12.6%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>S&P 500<\/strong><\/p>\n<\/td>\n<td>\n<p>4,001<\/p>\n<\/td>\n<td>\n<p>+0.3% (YTD: -16.1%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>FTSE 100<\/strong><\/p>\n<\/td>\n<td>\n<p>7,243<\/p>\n<\/td>\n<td>\n<p>+0.4% (YTD: -1.9%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Euro Stoxx 50<\/strong><\/p>\n<\/td>\n<td>\n<p>3,555<\/p>\n<\/td>\n<td>\n<p>+0.8% (YTD: -17.3%)<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Brent crude<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 101.60<\/p>\n<\/td>\n<td>\n<p>-4.1%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-up'>\n<td class='td-list-up'>\n<p><svg class='e-icon e-TypeMarkets11'><use xlink:href='#e-TypeMarkets11'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Natural gas <\/strong>(Nymex)<\/p>\n<\/td>\n<td>\n<p>USD 7.39<\/p>\n<\/td>\n<td>\n<p>+5.1%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>Gold<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 1,841.00<\/p>\n<\/td>\n<td>\n<p>-1.0%<\/p>\n<\/td>\n<\/tr>\n<tr class='tr-row-down'>\n<td class='td-list-down'>\n<p><svg class='e-icon e-TypeMarkets1'><use xlink:href='#e-TypeMarkets1'><\/use><\/svg><\/p>\n<\/td>\n<td>\n<p><strong>BTC<\/strong><\/p>\n<\/td>\n<td>\n<p>USD 30,394<\/p>\n<\/td>\n<td>\n<p>-1.1% (YTD: -33.0%)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<p><strong>THE CLOSING BELL-<\/strong><\/p>\n<p><strong>The EGX30 fell 0.9% at yesterday\u2019s close<\/strong> on turnover of EGP 637 mn (27.5% below the 90-day average). Local investors were net buyers. The index is down 9.5% YTD.<\/p>\n<p><strong>In the green: <\/strong>Cleopatra Hospitals (+4.6%) and CIB (+0.2%).<\/p>\n<p><strong>In the red: <\/strong>Abu Qir Fertilizers (-3.8%), Orascom Construction (-2.9%) and Fawry (-2.7%).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>EM currencies see biggest losses since 2020: Emerging-market currencies are suffering as investors pull out of risk assets in response to rising interest rates in the US and the economic slowdown in China, according to the Financial Times. The MSCI Emerging Markets Currency Index dropped over 4% since the beginning of April, the largest fall [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7210],"tags":[380,7106,115,72,119,78,7128,1730,122,1837],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-546316","post","type-post","status-publish","format-standard","hentry","category-planet-finance","tag-currencies","tag-debt","tag-emerging-markets","tag-enterpriseam","tag-financial-markets","tag-ipo-watch","tag-ma-watch","tag-philip-morris","tag-planet-finance","tag-swedish-match","wpautop","entry"],"acf":{"mongo_id":"21861041-d55b-4af3-8a1b-bb8d7e6bf704","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[546293],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Emerging-market currencies see biggest losses since 2020 - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/05\/11\/emerging-market-currencies-see-biggest-losses-since-2020\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Emerging-market currencies see biggest losses since 2020\" \/>\n<meta property=\"og:description\" content=\"EM currencies see biggest losses since 2020: Emerging-market currencies are suffering as investors pull out of risk assets in response to rising interest rates in the US and the economic slowdown in China, according to the Financial Times. 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EM currencies, in turn, logged losses after having ended 2020 with\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":624060,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/06\/23\/em-currencies-on-course-for-worst-1h-since-2020\/","url_meta":{"origin":546316,"position":1},"title":"EM currencies on course for worst 1H since 2020","author":"enterpriseam admin","date":"23 June 2024","format":false,"excerpt":"JPMorgan\u2019s index for currencies in emerging markets has dipped 4.4% in 2024","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/6\/1348.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":558548,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/16\/emerging-market-currencies-could-see-a-selloff-if-us-yield-spike-continues\/","url_meta":{"origin":546316,"position":2},"title":"Emerging-market currencies could see a selloff if US yield spike continues","author":"enterpriseam admin","date":"16 August 2021","format":false,"excerpt":"Emerging-market currencies poised for selloff amid possible US yield spike? Developing-nation currencies may suffer losses amid a possible sharp rise in US real yields as inflation rises and the mitigating effects of China's economic rebound fade, according to Bloomberg. Emerging-market currencies saw their biggest losses since July 9 as the\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":562151,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/05\/09\/planet-finance-rising-commodity-prices-are-good-news-for-em\/","url_meta":{"origin":546316,"position":3},"title":"Planet Finance: Rising commodity prices are good news for EM","author":"enterpriseam admin","date":"9 May 2021","format":false,"excerpt":"SUPERCYCLE WATCH- Copper prices are at all-time highs off of optimism over an economic rebound that has fueled talk of a commodities supercycle amid soaring raw material prices, Bloomberg reports. The surge in prices is raising the prospect of imminent inflation \u2014 despite some analysts suggesting it will be transitory\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":599325,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/25\/the-fed-hasnt-eased-yet-but-emerging-markets-are-already-feeling-the-benefits\/","url_meta":{"origin":546316,"position":4},"title":"The Fed hasn\u2019t eased yet but emerging markets are already feeling the benefits","author":"enterpriseam admin","date":"25 June 2019","format":false,"excerpt":"The Fed hasn\u2019t cut rates yet, but emerging markets are already feeling the benefits of its \u201cdovish\u201d stance: Emerging-market bonds and currencies posted their best week since 2017 last week after the US Federal Reserve and the European Central Bank gave their strongest hints yet that easing could soon be\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/2876.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":591667,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/12\/how-do-analysts-feel-about-emerging-markets-going-into-2020\/","url_meta":{"origin":546316,"position":5},"title":"How do analysts feel about emerging markets going into 2020?","author":"enterpriseam admin","date":"12 December 2019","format":false,"excerpt":"How do analysts feel about emerging markets going into 2020? Emerging markets are set to outperform developed markets in 2020, predict 57 global investors, traders and strategists in a Bloomberg survey, with all assets \u2014 currencies, stocks, and bonds \u2014 having rallied this year after 2018\u2019s EM Zombie Apocalypse. Total\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/12\/2354.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/546316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=546316"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/546316\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/546293"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=546316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=546316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=546316"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=546316"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=546316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}