Intervention by the Turkish central bank leads to emerging markets currencies to rally

• Big moves higher for all emerging market currencies.
• USDZAR falling on the back of the move from Turkish central bank.
• The lending rate raised to +425bp to 12% against a 225bp raise expected.
• The repo rate and borrowing rate were expected as unchanged and raised  550bp and 450bp.
• The liquidity rate was raised to 15% from 10.25%

USDZAR falls overnight

• Above we can see the effect on the USDZAR.
• Below we can see the correlation between the ZAR and the CAD, if this is good news, we may just see some reprieve for the CAD’s recent decline.