We also expect SSA inflation, on average, to fall back to the single digits, owing to more stable commodity currencies
and improved food output in East Africa.
are also enjoying a decent upside, after copper prices rallied to their highest level in almost four years.
Although the event didn't generate large volatility for the major five currencies, it happened to be a major episode for emerging market and commodity currencies
as we continue to witness lately.
The most prominent theme in the world currency market in the past year has been the spectacular rise of the US dollar against the Euro, the Japanese yen, commodity currencies
and above all, emerging markets.
This would translate to risks for more losses in the global markets, stretching as far as European equities, oil and commodity currencies
In the final Asian trade commodity currencies
nursed hefty losses on Friday as investors sent the Australian dollar to 5 1/2 year lows as they bet on the Australian central bank reducing interest rates when it meets this week.
The sharp decline in nearly all commodity prices and the weakening in commodity currencies
creates headwinds for oil demand in the commodity producing emerging markets in Latin America and the Middle East.
The bearish Chinese data has added to worries about a 40 per cent slide in iron ore prices this year and further soured sentiment for commodity currencies
These four currencies are generally known as commodity currencies
However, investors are wary that a supply shock could hurt global recovery prospects and hit the less-liquid and riskier commodity currencies
Of the three main EM commodity currencies
(BRL, ZAR, RUB), RUB has better fundamentals.
The latest IMF reserves data shows that central banks allocations to the Euro have now fallen below 24 per cent at the expense of A commodity currencies
such as the Norwegian kroner, Australian dollar and the Canadian dollar.