Bengaluru — Turkey’s lira led gains across emerging-market currencies on Monday as higher-than-expected inflation fueled expectations of tight monetary policy, while stocks in the developing world hit a 13-year high as investors hoped for a swift economic recovery in 2021.
The Turkish lira rose about 1.2%, leading gains across currencies in Europe, Middle East and Africa . Higher-than-expected December inflation figures saw investors increasing their expectations of near-term interest rate hikes by the central bank. “Low interest rates and an improving economic outlook following vaccines rollout has led to further short-selling in the dollar, particularly against the euro and yuan,” said Hussein Sayed, chief market strategist at FXTM.