From Yahoo Finance: 2025-05-26 04:57:00

Emerging market currencies increased after President Trump extended the EU tariff deadline, boosting risk appetite. The JPMorgan Emerging Market Currency Index is on track for its best run since 2010. The US dollar’s weakness has benefited developing-nation currencies, with Malaysia’s ringgit, Polish zloty, and Taiwan dollar seeing gains.

South Korea’s benchmark rose by 2%, and India’s Nifty 50 gauge climbed 0.5%, reflecting a risk-on sentiment. Economic data from Asia this week will provide insight into the impact of Trump’s trade war. Central bank decisions in South Korea and New Zealand, along with data on April exports and imports from Thailand and the Philippines, are expected.

Tariffs have not significantly impacted US inflation yet, but the effects may be more pronounced later this year. Trump’s decision to extend the EU tariff deadline has led to modest gains for EM currencies, but concerns remain about potential stagflationary consequences for the US economy. Business outlooks are becoming more cautious due to rising costs and reduced consumer sentiment.



Read more at Yahoo Finance: Emerging Market Currencies Gain as ‘Stars Align’ for Sector