Monday 26, November 2012 by Matein Khalid

Value and risk in emerging market currencies

The Russian rouble benefits from a hawkish central bank since CPI inflation has risen to 6% due to wage increases, food prices spiral due to bad harvests in the Volga/Ukraine and rise in utilities indices. Unlike most EM central banks, the Bank Rossiya must tighten monetary policy even as offshore capital inflows rise to take advantage of the Kremlin’s new pro-FDI policies.