* South Africa's rand hits 16-month high
* Turkish unemployment rate eases in March
* Dollar sinks to a more than two-month low
May 10 (Reuters) - Emerging market currencies hovered around
record-high levels on Monday as weak U.S. jobs data kept the
dollar under pressure, while South Africa's rand rose to a
16-month peak after Moody's skipped a sovereign rating review.
MSCI's index of emerging market currencies
rose 0.3%, staying just below a record high hit on Friday, as
rising commodity prices and weakness in the dollar benefited
A recent jump in commodity prices has benefited the
currencies of major exporters, including the Russian rouble
, Mexican peso, Chilean peso and Brazil's
The dollar sank to a more than two-month low versus major
peers on Monday after a disappointing U.S. employment report
prompted investors to temper expectations for higher interest
rates, with focus now shifting to inflation data this
"Anyone who thought that the Fed's employment target might
be in touching distance in the foreseeable future has had a
dampener on Friday. That means an important argument used by the
USD bulls has been shaken," said Ulrich Leuchtmann, head of FX
research at Commerzbank.
South Africa's rand rose 0.4% and led gains across
Europe, the Middle East and Africa. The currency's relatively
higher yield has helped it benefit from a low U.S. interest rate
regime, and made it the best performing emerging market currency
so far this year.
Fears of a credit downgrade for South Africa receded after
Moody's skipped a rating review for the country on Friday,
helping the rand extend gains.
Turkey's lira dropped 0.3% as the country's unemployment
rate inched lower in March to 13.1% from a year ago. Concerns
over spiking inflation and weakening government finances have
weighed on the lira this year.
Most central European currencies dropped against a stronger
euro with Hungary's forint, Polish zloty and
the Czech crown down between 0.1% and 0.2%.
Poland's central bank will start thinking about changing
monetary policy in the middle of 2022, governor Adam Glapinski
said on Friday, adding that the Monetary Policy Council was not
discussing cutting rates.
Polish banks were also awaiting a hearing on Tuesday, which
will decide how courts treat thousands of borrowers who took out
Swiss franc loans more than a decade ago, only to face
ballooning repayments when the zloty weakened.
The MSCI's index of EM stocks rose 0.3% to a
10-day high, with most EMEA and Asia bourses gaining on the
prospect of accommodative monetary policy across the globe.
For GRAPHIC on emerging market FX performance in 2021, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2021, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Shashank Nayar in Bengaluru; Editing by