* Forint hits 2-mth high, stocks at 3-wk high
* Emerging stocks rise, debt spreads narrow post-Fed
* Turkish lira hits 7-wk highs on tightening hopes
By Carolyn Cohn
LONDON, April 26 (Reuters) – The Hungarian forint struck
two-month highs on Thursday on expectations Budapest will secure
a much-needed aid package, as emerging assets rose broadly after
the U.S. Federal Reserve pledged to maintain low interest rates.
The Fed on Wednesday reiterated it expected rates would not
rise until late 2014 at the earliest, boosting the appeal of
higher-yielding emerging market assets.
The forint has rallied by more than 4 percent against the
euro since Monday, after the European Commission
opened the way for talks with Budapest on EU/IMF aid, ending a
five-month dispute over Hungary’s central bank independence.
“While it will be difficult, an IMF deal will eventually be
concluded as both parties have an interest in finding common
ground,” said Murat Toprak, emerging markets strategist at HSBC.
Continued…
