US dollar rebounds, emerging market currencies decline for the fifth consecutive trading day

Due to expectations that US interest rates will remain high, the US dollar continued its upward trend and reached its highest level of the year, putting pressure on broader risk assets. The MSCI Emerging Markets Currency Index fell by 0.3%, dropping to its lowest level since early April, with a cumulative decline of more than 1% over the past five trading days. As the US dollar set the longest streak of gains in more than a month, the index at one point erased all gains achieved so far this year. The Bloomberg Dollar Spot Index has risen nearly 2.3% so far this month. Almost all emerging market currencies have weakened against the US dollar, with the Israeli shekel and Malaysian ringgit among the few exceptions. The shekel rose 0.2% against the US dollar, but still significantly weakened this month. Expand