The weakening of the US dollar + global stock market rebound leads to emerging market currencies hitting a two-year high
Against the backdrop of a weaker US dollar and a rebound in global stock markets, emerging market currencies have climbed to their highest level in over two years. On Friday, the MSCI Emerging Markets Currency Index rose by 0.4% to 1742.8, the highest level since April 2022. The South Korean won rose by over 1%, leading Asian currencies. More and more people are betting that the Federal Reserve will cut interest rates in the coming months, putting pressure on the US dollar and easing the pressure on developing country central banks to defend their currencies. This year, authorities in countries such as India and Indonesia have intervened in the markets to support their domestic currencies. Ken Cheung, Chief Asia FX Strategist at Mizuho Bank, stated that expectations of further interest rate cuts by the Federal Reserve will continue to benefit emerging market Asian currencies
According to the VESYNC11 financial APP, against the backdrop of a weaker US dollar and a rebound in global stock markets, emerging market currencies have risen to their highest level in over two years. On Friday, the MSCI Emerging Markets Currency Index rose by 0.4% to 1742.8, the highest level since April 2022. The South Korean won rose by over 1%, leading Asian currencies.
More and more people are betting that the Federal Reserve will cut interest rates in the coming months, putting pressure on the US dollar and easing the pressure on central banks in developing countries to defend their currencies. This year, authorities in countries such as India and Indonesia have intervened in the markets to support their domestic currencies.
Ken Cheung, Chief Asia FX Strategist at Mizuho Bank, stated that expectations of further interest rate cuts by the Federal Reserve will continue to benefit emerging market Asian currencies