Emerging Market Currencies Fall for Fifth Consecutive Session as Dollar Hits Yearly High

On Wednesday, emerging market currencies weakened for the fifth consecutive trading day amid expectations that U.S. interest rates will remain elevated. The MSCI Emerging Markets Currency Index fell 0.3%, reaching its lowest level since early April, with cumulative losses exceeding 1% over the five-session period. The Bloomberg Dollar Spot Index has gained nearly 2.3% this month, putting pressure on broader risk assets. Most emerging market currencies declined against the U.S. dollar, with the Israeli shekel and Malaysian ringgit as notable exceptions.
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