EM Currencies Sink to 2-Month Low as Blowout US Jobs Data Dims Fed Cut Bets
Updated
Updated · Bloomberg · Jun 5
EM Currencies Sink to 2-Month Low as Blowout US Jobs Data Dims Fed Cut Bets
3 articles · Updated · Bloomberg · Jun 5
Summary
MSCI’s emerging-market currency index fell to its lowest since early April after a stronger-than-expected US jobs report hit developing-world FX.
The payrolls data signaled the US labor market is breaking out of a long stretch of weak hiring, weakening the case for near-term Federal Reserve rate cuts.
Mexico’s peso and South Africa’s rand—two key emerging-market bellwethers—reversed earlier gains and turned lower after the report.
The move underscores how stronger US economic data can lift rate expectations and pressure higher-yielding emerging-market assets worldwide.