The Kazakh tenge may weaken against the dollar this month after Brent crude retreated from the $80-per-barrel mark and several emerging market currencies came under pressure, according to a Reuters poll. Four of eight participants in the poll, which was carried out from May 25 to June 1, predicted that the oil-exporting Central Asian nation's currency would depreciate this month. Two analysts forecast no significant changes and two were bullish.
The twelve-month outlook for the tenge was bearish, with five out of eight participants predicting it would fall.
The tenge slid 1.0 percent against the dollar last month, moving into the red zone after Brent crude gave up most of its monthly gains.
Aibek Burabayev, chief trader at the Kazakh subsidiary of Industrial and Commercial Bank of China, said the global interest rate tightening cycle together with escalating trade wars has put strong pressure on all emerging markets. "The dollar is strong accross all markets amid strong demand for safety and rising yields. The Turkish lira and the Malaysian ringgit have already weakened dramatically," he said.
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