Financial Times: Violence increases fears of debt default contagion
The worsening violence in Ukraine is adding to the strains on emerging markets, as investors weigh the risks to neighbouring economies and the potential for a Ukrainian debt default to trigger a renewed sell-off in the assets of other countries.
The chaos unfolding in Kiev hit central and eastern European currencies on Wednesday, with Polands zloty falling 0.5 per cent to 4.1478 against the euro. Hungarys forint, already under pressure from persistently dovish monetary policy, fell about 1 per cent to 227.43 against the dollar, while the Romanian leu slipped 0.6 per cent. Fears over Ukraine also exacerbated a sharp fall in Russias rouble.
Donald Tusk, Polands prime minister, urged the countrys parliament to prepare Poland and Europe for the most dramatic possibilities, in a speech that showed the degree of concern felt in the country most directly exposed to Ukraines turmoil.
Con't
The worsening violence in Ukraine is adding to the strains on emerging markets, as investors weigh the risks to neighbouring economies and the potential for a Ukrainian debt default to trigger a renewed sell-off in the assets of other countries.
The chaos unfolding in Kiev hit central and eastern European currencies on Wednesday, with Polands zloty falling 0.5 per cent to 4.1478 against the euro. Hungarys forint, already under pressure from persistently dovish monetary policy, fell about 1 per cent to 227.43 against the dollar, while the Romanian leu slipped 0.6 per cent. Fears over Ukraine also exacerbated a sharp fall in Russias rouble.
Donald Tusk, Polands prime minister, urged the countrys parliament to prepare Poland and Europe for the most dramatic possibilities, in a speech that showed the degree of concern felt in the country most directly exposed to Ukraines turmoil.
Con't