Tel Aviv - Emerging-market currencies and stocks advanced as a rally in commodities bolstered the outlook for raw-material exporters.
The MSCI Emerging Markets Currency Index rose for the fourth time in five days led by gains in South Africa’s rand and Brazil’s real, which advanced the most among major currencies.
The Mexican peso weakened 1.9% to a record low, spurring Banxico’s intervention bets.
The MSCI Emerging Markets Index of stocks climbed to a three week-high. The Bloomberg Commodity Index halted a three-day slide as the dollar retreated from the highest level in 14 years.
"Positive momentum in commodity prices and a weaker dollar are the main drivers for emerging-market currencies today," said Georgette Boele, a currency and commodity strategist at ABN Amro in Amsterdam and one of the top forecasters for Brazil’s real in the past quarter, according to Bloomberg rankings.
Currencies
The MSCI Emerging Markets Currency Index rose 0.1% South African rand climbed 1.5%, Brazil’s real advanced 1.4%, breaching the 3.24-3.30 per dollar range that had been in place since December 22 Credit Suisse says the Mexican peso is now in ‘uncharted territory’ amid US trade uncertainties Argentina’s peso extended last week’s losses and hit a record low
Stocks
The MSCI equities gauge rose 0.4% after climbing above its 50-day moving average for the first time since November 9 on Tuesday.
Argentina’s Merval index advanced for a sixth consecutive day Russia’s RTS index fell 1.1%, the worst performer among major markets; Brazil’s Ibovespa declined 0.4%.
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