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Emerging-Market Currencies Fluctuate as Post-Fed Euphoria Dims

Livemint · 2m

Emerging-market currencies were volatile following the Federal Reserve's rate cut as risk-on sentiment waned. The MSCI gauge for developing-market currencies remained relatively unchanged, while Brazil's real fell, awaiting the government's budget review. The MSCI index for EM equities rose, led by Taiwan and Hong Kong shares. Investors remain concerned about global economic growth and geopolitical risks, which could complicate the outlook for exposed economies and assets. In currency moves, Mexico's peso dropped against the dollar, Indonesia's rupiah gained due to rising bond inflows, and Thailand's baht surged. Sri Lanka's dollar bonds lagged behind, while Egypt plans to return to international debt markets.