Emerging currencies weaken led by South Africa on Fed, China

Erdogan Warning

“While the U.S. data has been too strong for comfort, Chinese figures have been too weak,” John Cairns, a currency strategist at Rand Merchant Bank in Johannesburg, said in e- mailed comments. “The net result of the U.S. and Chinese data has been to put the high-yielding commodity currencies under pressure.”

The lira lost 1.1% against the dollar and Turkey’s benchmark stock index sank 1.1%.

“You who started this struggle against us, you’ll pay a heavy price for it,” Prime Minister Recep Tayyip Erdogan said, referring to private banks and an “interest-rates lobby” he says is trying to undermine and profit from Turkey’s economy by keeping its rates high. “The interest rates lobby has exploited my people’s sweat for years, and you won’t be able to exploit it any longer.”

Erdogan said yesterday that his government would “squeeze the throat” of speculators in the stock market.

Emlak Konut plunged 8.7% in Istanbul as the company delayed its secondary public offering due to market fluctuations, the company said after market closed on June 7.

Last Meeting

Russia’s ruble slipped 0.5% against the dollar to its weakest since Sept. 3. The central bank left its main interest rates unchanged at Chairman Sergey Ignatiev’s last policy meeting as inflation growing at the fastest pace in 21 months overshadowed risks from the slowing economy.

The rupee declined 1.9%, weakening for a fourth day. The shortfall in India’s current account, the broadest measure of trade, widened to an unprecedented 5% of gross domestic product in the year ended March 31, according to government estimates. The “panic” in India’s currency market is “unwarranted,” Economic Affairs Secretary Arvind Mayaram said today.

Benchmark equity gauges in Russia and the Czech Republic declined today, while those in Poland and Hungary rose.

The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong fell 0.6% to the lowest level since Oct. 10. It slumped for a ninth day, capping the longest losing streak since March 2012. China’s market is closed for holidays.

Indonesia’s Jakarta Composite Index slid 1.8% to the lowest level since March 22. Foreign institutional investors sold a net $183.6 million of Indonesian equities on June 7, the most since Aug. 19, 2011, data compiled by Bloomberg show.

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