Reported 12 months ago
Emerging-market currencies declined due to worries about a potential Trump victory in the upcoming presidential election, leading to speculations of higher US Treasury yields. This overshadowed statements from Fed Chair Jerome Powell regarding inflation trends. The MSCI gauge for developing currencies dropped by 0.2% to a two-month low, with currencies like Thailand's baht, Indonesia's rupiah, and South Africa's rand lagging behind. Traders are concerned that Trump's economic policies could increase inflation and maintain pressure on emerging markets, leading to adjustments in US Treasury notes trading. In other currency news, the Brazilian real fluctuated amidst growing conflict between the government and the central bank. El Salvador's sovereign bonds performed well on expectations of an IMF deal under a potential Trump presidency. Bonds from Chile and Ukraine also made headlines in the credit markets.
Source: YAHOO