Topic: emerging market currencies
The use of local currencies in settlement of trade and other areas helps to reduce transaction costs and foreign exchange risks, according to the central banks involved
While some analysts predict modest USD depreciation, there's still a factor for it to remain stable.
Indian Rupee is closer to the 74 mark after central bank holds off rate hike. The country also faces rising oil prices and possible US sanction
While the central bank is expected to announce rate hike this week, there are speculations that it won't
China's rates remain unchanged while India will announce its monetary policy decision next Friday
The three currencies may find some additional support despite challenges
Emerging market currencies have stabilized over the last couple of weeks while local currency bond yields have retreated from their highs, but do these signal the end of the sell-off?