Emerging-Market Currencies Get Relief as Trump’s Bite Seems Worse Than His Bark.

In the first week since Donald Trump returned to the White House, emerging-market currency traders are celebrating the small wins.

The absence of tariffs on Chinese imports, for now, was enough to fuel gains in developing-world currencies, leaving a benchmark index on track to climb 1.1% this week, its best performance since November 2023. Trump’s comments hinting he would rather not impose levies on China were further welcomed by investors, who hunted for hard-hit Asian currencies on Friday.

“It’s more of a relief rally,” said Alvin Tan, head of Asian FX strategy at Royal Bank of Canada in Singapore. “The market is relieved that the worst-case scenario of maximalist US tariffs that Trump had promised in his campaign appears to be falling by the wayside.”

Source: FINANCE.YAHOO