Currencies: RUB highlights a good outlook for EM currencies – Danske Bank
Commodity currencies have experienced a recovery in the last day, with the Russian ruble (RUB) as the best example. Danske Bank is expecting Central and Eastern Europe (CEE) currencies to advance.
“The recent sell-off of the RUB stands out as having been the last currency to be negatively affected and one of the first to rally strongly. In our view, this is a testament to the fundamental strength of the Russian economy, prospects of fiscal expansion and carry attractiveness, which is also likely to continue in the months ahead.”
“Some short-term relief is probably CNH/JPY friendly if signals of policy easing make markets expect the Chinese economy to recover faster than they are currently projecting and commodities to bounce back slightly.”