An index tracking emerging-market currencies rose as much as 0.2% to 1,906.98 on Monday, hitting a record high, while an EM equity index gained about 0.6%. Softer US economic data trimmed expectations for further Fed tightening and weakened the dollar, supporting EM assets. BNY Mellon senior Asia strategist Wee Khoon Chong said EM FX is being bolstered by dollar softness and a renewed risk-on mood, with strong foreign inflows into emerging markets—particularly Asia. SocGen emerging-Asia strategi

An index tracking emerging-market currencies rose as much as 0.2% to 1,906.98 on Monday, hitting a record high, while an EM equity index gained about 0.6%. Softer US economic data trimmed expectations for further Fed tightening and weakened the dollar, supporting EM assets. BNY Mellon senior Asia strategist Wee Khoon Chong said EM FX is being bolstered by dollar softness and a renewed risk-on mood, with strong foreign inflows into emerging markets—particularly Asia. SocGen emerging-Asia strategist Galvin Chia added that Asian currencies have benefited from last week’s weak US data and early-week dollar weakness; an absence of fresh geopolitical headlines and Brent trading under $90 are additional supports as the market exits the seasonal summer lull.