Expectations for Fed interest rate hikes have cooled, leading to three consecutive declines in the dollar, hitting a new low since May, while the emerging market currency index soared to a historic high.

According to the Zhitong Financial App, as a series of disappointing U.S. economic data has completely extinguished market expectations for a Federal Reserve rate hike in September, global capital is rapidly repricing at the fastest pace seen in recent months. On August 17, the Bloomberg Dollar Spot Index fell for the third consecutive trading day, reaching its lowest level since May 15. Meanwhile, the MSCI Emerging Markets Currency Index briefly rose 0.2% to 1906.98 during the trading session, setting a new historical high; the Emerging Markets Stock Index also climbed 0.6%, indicating a significant improvement in risk appetite.