Emerging Markets See Mixed Reactions Amid U.S. Election and Fed Speculation
Emerging market currencies saw gains as the U.S. dollar weakened. Stocks fell with focus on the U.S. election and Fed's interest rate decisions. China's yuan rose, while South Africa's rand rebounded. The dollar index remained high with markets speculating potential U.S. fiscal policies under Trump.
On Thursday, emerging market currencies experienced gains as the dollar softened, amidst a global focus on the U.S. presidential election and the Federal Reserve's interest rate trajectory. However, a broader measure indicated declining stocks.
MSCI's index of emerging market stocks fell 0.6% with Chinese shares closing lower. Similar downward trends were observed in South Korea and Hong Kong, experiencing falls of 0.7% and 1.3%, respectively.
Central and Eastern Europe currencies traded mixed against the euro. Meanwhile, South Africa's rand gained 0.5%, in view of the weakening dollar, and its stock market rose almost 1%, buoyed by rising commodity-linked shares.
(With inputs from agencies.)
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