Real, Rand, Lira Rallies Are at Risk as Yields Fall

(Bloomberg) - The world's biggest foreign-exchange traders say the best performing emerging market currencies will decline against the U.S. dollar this year as economic growth slows and price swings increase.

Brazil's real, Turkey's lira and South Africa's rand may weaken at least 3.75 percent after gains of more than 14 percent in 2007, according to the median forecasts of banks and securities firms surveyed by Bloomberg News. The lira and rand last fell in 2006, while the real has strengthened for five straight years.

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Polish Zloty Set for Weekly Gain as Investors' Appetite for Risk Revives

(Bloomberg) -- The Polish zloty was poised for a
weekly gain, advancing to an eight-day high against the euro as
investors regained their appetite for emerging-market assets.

Investors resumed buying stocks and higher-yielding
currencies such as the zloty, the Turkish lira and the South
African rand as concern abated that losses on U.S. subprime
mortgages would slow global economic growth.


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Turkish Markets May Rally After Erdogan's Justice Party Wins Re-Election

(Bloomberg) -- Turkish stocks, bonds and the lira
may gain after voters re-elected Prime Minister Recep Tayyip
Erdogan, giving him a mandate to extend policies that won Turkey
European Union membership talks and helped bring 21 straight
quarters of economic growth.

Erdogan's Justice and Development Party took 47 percent of
the vote with almost all ballots counted at 1 a.m. in the
capital Ankara, according to the state-run Anatolia News Agency.
That's likely to give the party 342 lawmakers in the 550-seat
parliament, CNN Turk television said.


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