Emerging-market currencies remained stable as the dollar weakened following the US capture of Venezuela’s leader, Nicolas Maduro. The MSCI benchmark for EM currencies recovered from losses, with Colombia and Brazil currencies rising. The dollar lost strength after US manufacturing activity shrank, impacting markets globally.

Effects of the US action in Venezuela are felt across markets, with Colombia seeing its dollar bonds slump as tensions rise between Trump and Petro. Venezuela bonds rallied, yielding profits for investors. Developing nations like Mexico, Chile, and Saudi Arabia are rushing to sell bonds to fund economic diversification.

The MSCI Emerging Markets Index reached a record high, driven by Taiwan Semiconductor Manufacturing Co. and other tech giants. Asian companies are optimistic about AI prospects, with inflows expected due to under-ownership. Despite potential bumps, emerging markets may continue to rally with support from tech and AI momentum.

Read more at Yahoo Finance: EM Currencies Steady as USD Loses Haven Appeal