Emerging market assets plunge across the board: Stronger US dollar and sell-off in Korean tech stocks impact markets

Impacted by the US Federal Reserve's hawkish expectations and a broader risk-off sentiment, the MSCI Emerging Market Currency Index fell by 0.2%, marking declines for four consecutive trading days. Almost all developing country currencies depreciated against the US dollar, with major Latin American currencies such as the Brazilian real, Chilean peso, and Mexican peso performing the worst. The Mexican peso depreciated against the US dollar by more than 1%, dropping to its lowest level since April this year. The Hungarian forint was the worst-performing currency, falling nearly 1.4% against the US dollar. Previously, due to the recent strength of the forint and slowing inflation, the Hungarian central bank cut its benchmark interest rate and indicated there was still room for further easing. Expand