Gauge of EM Currencies Rises as Dollar Slips on Thin Trading

A gauge for emerging-market currencies gained as President Donald Trump’s move to extend a deadline for aggressive tariffs on the European Union bolstered risk appetite, in a session marked by thin trading volumes due to holidays in the US and the UK.

MSCI’s gauge of EM FX, a total return index that includes interest earned on those currencies, climbed as much as 0.4% to an all-time high, though developing-nation currencies were largely mixed amid low liquidity. A gauge of the dollar hovered near its lowest level in almost two years.