Renewed Hopes for Middle East Peace Boost EM Currencies

Motorists wait in line at a gas station in Mandaluyong, the Philippines, in March.
Photographer: Lisa Marie David/Bloomberg

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By Leda Alvim, Srinivasan Sivabalan, and Kerim Karakaya

April 9, 2026 at 10:11 AM UTC

Updated on

April 9, 2026 at 8:54 PM UTC

Emerging-market currencies broadly gained as news Israel agreed to hold direct talks with Lebanon fueled hopes for peace in the Middle East and lifted risk assets.

Most developing-nation currencies were up against the dollar on Thursday as oil pared its advance on prospects the ceasefire deal will hold after Israeli Prime Minister Benjamin Netanyahu said he is open to hold direct talks with Lebanon. Latin American currencies rallied across the board, while the Israeli shekel strengthened to its highest level since 1995.