Latin America Leads EM Currency Bounce Amid Easing Mideast Worry

Developing-nation currencies were split, with Latin America leading a rebound in US hours as investors wagered that a conflict in the Middle East would remain limited in scope and parsed through signals on the direction of US monetary policy.

The MSCI index for EM currencies came close to erasing losses after Iran’s retaliatory strikes at a US air base in Qatar were seen as symbolic, leading President Donald Trump to raise hopes of de-escalating the conflict. The South African rand, seen as a bellwether for risk appetite, led gains with a 0.7% advance.