South African rand is leading gains
The rand is up by 1.2% against the dollar today as global risk sentiment seems to be making a bit of a recovery. Equities are generally in a more positive mood while bond yields are trading higher as well. And in the emerging markets space, almost all currencies are holding their own against the greenback today.
It's going to be quite a week for emerging market currencies with a host of central bank meetings to come. We'll first have Argentina today, followed by Turkey on Thursday, and Russia will round things off on Friday.
The market is positioned in a way expecting good news to come from all three central banks and the risk here is that the measures they will be announcing will be a disappointment. Should they fail to provide enough support for their respective currencies, the recent calmness we're seeing here will prove to be nothing but a false dawn - something we're very much used to when it comes to emerging market currencies this year.
EM currencies' performance against the dollar today
