Russia's ruble slipped after the country’s central bank introduced a new foreign exchange policy, while Turkish stocks fell ahead of a projected rate hike, reports Reuters. High-yielding emerging market assets were generally firmer following benign U.S. inflation data in the previous session which may give the Federal Reserve room to keep interest rates low.
Russia's central bank said this week that it would begin daily interventions in the local forex market to discourage currency speculators and make the ruble’s exchange rate more flexible.
The move followed weeks of speculation that the central bank would allow the ruble to appreciate after the inauguration of President Dmitry Medvedev, to curb inflation and protect the new leader's popularity.
Turkish stocks fell 0.4% and Turkey's benchmark 30-year bond fell half a point ahead of an expected 50 basis point rate rise later on Thursday, to 15.75%.
Shares in Turkey's leading fixed-line operator
Turk Telekom moved in a range between 4.48 and 4.68 lira as trade was launched on Thursday, in line with an initial public offering price of 4.6 lira. The offering, the second phase of Turk Telekom's privatization, was priced at a big discount to other Turkish stocks.
