Emerging Currencies Erase War Losses as Traders Bet on Peace
Slain Iranian military leaders are pictured on banners near Tehran Grand Bazaar on April 16.
Photographer: Majid Saeedi/Getty ImagesA key gauge of emerging-market currencies has fully recovered its losses from the start of the US-Iran war, driven by optimism that the conflict is de-escalating after Iran reopened the Strait of Hormuz.
The MSCI Emerging Markets Currency Index rose 0.6% to 1,884.37 points on Friday, after Iran announced that the Strait of Hormuz is now “completely open” for commercial traffic. The latest development sent oil prices down more than 10%, with Brent crude trading at around $86 per barrel amid revived optimism there may be an end in sight to the conflict.