Emerging market currencies fall back, market focus shifts from Ukraine to the Federal Reserve.

On Tuesday, emerging market currencies edged lower as traders digested signs of progress in peace talks in Ukraine, while also waiting for more clues on US monetary policy from the Federal Reserve meeting being held in Jackson Hole this week. The MSCI Emerging Markets Currency Index edged lower for the fourth consecutive day, dragged down by the Brazilian real, Indonesian rupiah, and Colombian peso. Indexes tracking emerging market stocks also edged lower. The US dollar edged higher in light trading as traders turned their focus to Federal Reserve Chairman Powell's speech to solidify their bets on a rate cut in September.