September 17, 2021
Markets

EMERGING MARKETS-Currencies rally as dollar dips on weak U.S. jobs growth

* Tax reform in Brazil eyed; narrowing in revenue expected * S.African rand jumps 1% after U.S. non-farm payrolls * EM corporate bond sales scale record high this year – data By Susan Mathew Sept 3 (Reuters) – Emerging market currencies hit 11-week highs on Friday after a sharp slowdown in U.S. jobs growth signaled the Federal Reserve may not rush to taper stimulus, sending South Africa’s rand up 1% while Mexico’s peso touched three-week peaks. MSCI’s index of EM currencies rose 0.3%, putting it on course for its best week this year, while its currency counterpart climbed 0.3%. Data showed U.S. non-farm payrolls increased 235,000 in August versus expectations of 728,000, sending the dollar to one-month lows. The data signaled the labour market in the United States might not yet be in a place where existing stimulus measures, put in place to tide over a coronavirus pandemic induced…

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