In This Article:
* Turkish factory output rises 9.1% yr-on-yr in May
* Hungary leaves one-week deposit rate steady; forint
* EM fund Ashmore hits 13-year low as investors pull out cash
By Anisha Sircar
July 14 (Reuters) - Currencies in emerging markets slipped on Thursday as the U.S. dollar resumed its steep ascent on growing fears of a recession, while regional stocks slipped after a spate of policy tightening moves by major central banks.
Outperforming currencies, Philippines' peso and the Singaporean dollar jumped 0.3% and 0.7%, respectively after central banks in the countries unexpectedly raised their interest rates.
Meanwhile, Chile's peso moved away from record lows after the Andean country hiked rates to 9.75% on Wednesday.
The U.S. Federal Reserve is also seen stepping up its tightening campaign with a supersized 100 basis point rate hike in July after data showed inflation accelerating to four-decade highs.
"The outlook for EM growth has deteriorated over the past month as fears of a global recession mount and various indicators point to global trade weakening," Oxford Economics said in a note.
"Inflation is now above target in all main inflation-targeting EMs except for China, with emerging Europe seeing the biggest jumps in inflation rates."
EM stocks slipped 0.2%, while currencies fell 0.3%.
Among currencies, Turkey's lira, South Africa's rand and Mexico's peso lost between 0.4% and 1%.
"We may see more of this (tightening) from other monetary authorities in the region now as pain thresholds and the burning through of forex reserves reach their pain points," said Jeffrey Halley, senior market analyst at OANDA.
Shares of EM investment firm Ashmore fell to a 13-year low after it reported a far heavier-than-expected $6.6 billion exodus from its funds after a torrid few months for developing economies.
Recent policy tightening cycles have compounded EM economic pain as Russia's invasion of Ukraine, a soaring dollar, rising inflation and China's economic strains have combined to give the region their most difficult year on record.
Pakistan's rupee firmed 0.2% following recent record lows against the greenback. The International Monetary Fund said it had reached a staff-level agreement with Pakistan that would pave the way for the disbursement of $1.17 billion.
Hungary's forint snapped a four-day losing streak to rise 0.4%. The central bank left the interest rate on its one-week deposit facility unchanged at 9.75% after last week's sharp rate hike to stem the currency's plunge.