Emerging Markets Brace Amid Tariff Tensions and Currency Fluctuations

Emerging market currencies remained mostly stable to lower, as investors focused on potential changes to U.S. tariffs. President Trump's stated plans hinted at certain exceptions and possible delays. Meanwhile, emerging markets like Turkey, Hungary, and South Africa showed varied responses in stocks and currencies, amid political and economic shifts.

Emerging market currencies held a mostly stable to lower trajectory on Tuesday, with investors exercising caution amid looming tariff changes. Stocks mirrored this indecision, remaining largely range-bound.

U.S. President Donald Trump on Monday suggested imminent automobile tariffs, although he noted that some planned levies slated for April 2 might see exceptions or delays. Earlier reports from Bloomberg and the Wall Street Journal indicated a more focused approach to these tariffs, possibly postponing sector-specific charges.

The currency landscape reflected these developments, with Turkey's lira stabilizing after a dramatic plunge last week, stabilized by local stock performance and political dynamics. On Tuesday, officials from Turkey planned a teleconference with international investors to discuss these shifts.

(With inputs from agencies.)