Emerging-market currencies slipped as investors awaited Middle East developments
and US economic releases due later this week. An index of developing‑market
currencies fell 0.2% to a one‑month low. The South Korean won weakened as
foreign equity outflows offset export support. US President Trump said he wants
to give diplomacy more time before deciding whether to resume strikes on Iran
after this week’s midterm elections. Mitsubishi UFJ Financial Group FX
strategist Lloyd Chan warned that a resilient US labor market would reinforce
expectations of further Fed tightening, while elevated oil prices would further
burden regional energy importers; rising US Treasury yields alongside high oil
will continue to pressure regional FX.
