Emerging Market Currencies Steady Amid Anticipated U.S. Economic Data

Emerging market currencies held steady on Tuesday as investors awaited crucial U.S. economic data, including the ISM manufacturing survey and the nonfarm payrolls report. The outcomes could influence Federal Reserve's future rate decisions. Central Eastern Europe currencies remained muted, while Asian currencies saw minor declines.

Emerging market currencies held steady on Tuesday, with investors keenly awaiting pivotal U.S. economic data. This includes the ISM manufacturing survey due later in the day and the crucial August nonfarm payrolls (NFP) report on Friday. These reports could provide insights into the Federal Reserve's expected rate cut later this month.

Analysts at Monex Europe anticipated that the ISM reading would improve, alleviating concerns about the labor market and potentially boosting the dollar. Federal Reserve Chair Jerome Powell's recent dovish comments underscore the importance of labor market conditions.

Central Eastern European currencies, including Hungary's forint, Poland's zloty, and the Czech crown, traded flat against the euro. Asian currencies mostly fell, with the Philippine peso down 0.2%. Turkey's lira slipped 0.3% following an inflation report, and South Africa's rand fell ahead of GDP data.

(With inputs from agencies.)