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EMERGING MARKETS - Currencies Rise on Vaccine News

EMERGING MARKETS - Currencies Rise on Vaccine News
EMERGING MARKETS - Currencies Rise on Vaccine News

(Reuters) - The Turkish lira was the top gainer among currencies in Europe, the Middle East and Africa on Wednesday amid hopes for a COVID-19 vaccination, while the South African rand declines ahead of public sector salary court hearings.

The growth of the lira against the dollar in the course of trading reached 0.8%. Rand is down about 0.3%.

MSCI Emerging Markets Currency Index Peak Since April 2018.

The UK on Wednesday became the first country in the world to authorize the Pfizer-BioNTech COVID-19 vaccine. Vaccinations will start next week.

Some analysts said vaccine approval indicates upward pressure for most risky assets in the short term.

"We are of the opinion that stocks and other risk-related assets are likely to continue to rally, while safe assets like the US dollar and Japanese yen may remain selling targets.", - said Charalambos Pissouros of JFD Group.

Foreign investors poured a record $ 76.5 billion into emerging market portfolios in November, the Institute of International Finance said in a report released on Tuesday..

South African rand comes under pressure ahead of government wage dispute with public sector unions - a case expected to have serious implications for government spending in the near term.

In Central Europe, the Hungarian forint appreciated slightly against the euro, while other currencies in the region were inactive. Investors await a decision by the Polish central bank, which is expected to keep the base rate at just above zero.

EMEA shares rose, with Turkish stocks leading the way. MSCI Emerging Markets Equity Index Jumps 0.2% To Nearly 32-Month High.

(Ambar Warrick. Translated by Caleb Davis. Editor Marina Bobrova)

EMERGING MARKETS - Currencies Rise on Vaccine News

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