Emerging Currencies Retreat as Focus Shifts from Ukraine to Fed
Donald Trump and Volodymyr Zelenskiy with European leaders at the White House in Washington, DC, on Aug. 18.
Photographer: Aaron Schwartz/CNP/Bloomberg
Emerging-market currencies edged lower on Tuesday as traders processed signs of progress in Ukraine peace talks while waiting for more clues on US monetary policy from the Federal Reserve’s gathering at Jackson Hole this week.
A MSCI gauge of developing currencies fell slightly to mark a fourth day of losses, dragged lower by the Brazilian real, the Indonesian rupiah and the Colombian peso. A sister index tracking emerging-market equities also edged lower. The US dollar ticked higher amid thin volumes, as traders turn their focus to Fed Chair Jerome Powell’s speech to solidify their bets of a rate cut in September.