Lates News

Due to a cooling market expectation for the Federal Reserve's interest rate hikes, emerging market currencies have risen to historic highs, stimulating demand for risk assets. The index tracking emerging market currencies rose by 0.2% on Monday to 1906.98, reaching an all-time high; the emerging market stock index also rose by 0.6% at one point. Weaker U.S. economic data has diminished expectations for further tightening by the Federal Reserve, and the weaker dollar has supported the rise of emerging market assets. Wee Khoon Chong, senior strategist for Asia-Pacific markets at BNY Mellon, stated, "Emerging market currencies are supported today, mainly driven by the weaker dollar and the continued resurgence of risk appetite in the stock market. We are seeing a strong reinvestment of foreign capital into emerging markets, especially in Asia." Galvin Chia, emerging Asia strategist at Socit Gnrale, noted, "Asian currencies seem to be benefiting from last week's weak U.S. data and the weaker dollar at the beginning of this week. The lack of new geopolitical news over the weekend and Brent crude oil prices below $90 may also provide support to the market, which appears to be at the tail end of the summer off-season."