Following March 5 trading, market exchange rate of KZT made 419.66 KZT/USD, losing 0.6% for a week (from 417.02).

Between February 26 and March 5, 2021 currencies of developing countries on the foreign exchange market were mainly getting weaker. Growing returns on US treasury bonds and global strengthening of USD exchange rate continued against the background of comments from Chief of the US FRS. Jerome Powell has confirmed commitment to stimulating monetary policy, however he has not voiced concerns regarding growing returns. The US Senate has approved a $1.9 trillion relief bill. US labor market report in February exceeded expectations of analysts: newly created jobsites totaled 379,000, unemployment rate was 6.2%.

Exchange rates for currencies of developing countries[1] demonstrated the following dynamics against the USD:

• Indian rupee, INR, gained 0.6% (from 73.47 up to 73.03) against the background of capital inflow to the stock market;
• Russian ruble, RUR, gained 0.3% (from 74.57 up to 74.34) against the background of growing oil prices;
• Indonesian rupiah, IDR, lost 0.5% (from 14,235 down to 14,300) against the background of increased returns on US treasury bonds and continuing capital outflow from debt market;
• Turkish lira, TRL, lost 1,3% (from 7.43 down to 7.53) against data about accelerating inflation up to 15.6% y-o-y in February despite measures to increase the rate;
• Brazil real, BRL, lost 1.4% (from 5.6 down to 5.68) against the background of concerns about fiscal stability (Senate approved $7.8 billion social package), growing returns on US government securities and signals about slowdown of economic growth in 2021;
• South-African rand, ZAR, lost 1.6% (from 15.12 down to 15.36) against the background of capital outflow from debt market;
• Mexican peso, MXP, lost 2.2% (from 20.86 down to 21.31) against the background of stronger USD exchange rate and concerns of investors about a disputable draft law which provides for stronger government control over power engineering.

Dynamics in currencies of developing countries
February 19, 2021 =100, index rise – currency consolidation)

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