Emerging Market Currencies Gain, Eyes On Trump Trade Speech
The MSCI EM currency index surged 0.5%, led by the Czech koruna and Hungarian forint. The lack of specifics on trade policies in President Trump's inaugural address supported gains.
The Mexican peso initially weakened over Trump's emphasis on immigration, but recovered. The market awaits details on tariffs, as Trump avoided China-specific measures.
Trump's remarks underscore transformational policy goals, but their impact on emerging markets remains uncertain.
Emerging European currencies remained strong on optimism over a possible end to the Ukraine conflict, fueled by Putin's willingness for talks with the US.
Emerging market stocks also rose, with the MSCI EM stock index up 1.2%.