Russia’s more than $400 billion of foreign reserves pose a challenge for President Vladimir Putin as he seeks to diversify holdings away from U.S. and European bonds and buy more debt of the largest emerging nations.
Lira weakness since the Federal Reserve signaled U.S. interest rates could rise faster than anticipated is exposing Turkey’s economic vulnerability amid concern the central bank may need to cut borrowing costs further to spur growth.
As speculation deepens the European Central Bank will start quantitative easing just as the Federal Reserve ends its own bond buying, Europe is gaining more leverage over investors globally as the specter of deflation in the region unleashes greater demand for fixed income.
According to court documents filed in London last week, a fund managed by Soros’s family office, has joined a group of investors suing bond trustee Bank of New York Mellon Corp. for failing to distribute 226 million euros ($298 million) of interest payments on Argentine debt.
The euro traded at almost its lowest level versus the dollar since November as investors held the largest position in two years betting on a drop in the currency before the region’s central bank meets this week.