U.S.-China Tensions Halt Rally in Emerging Market Currencies
- Hopes for U.S. stimulus, vaccine development counter pessimism
- Lira sank to a record low despite interventions to stem slide
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A rally in emerging-market currencies paused last week, even as the dollar held close to its lowest level in two years, as intensifying U.S.-China tensions outweighed positive developments on the vaccine front and optimism of a U.S. stimulus deal. Developing-nation stocks rose for a third week amid signs of recovery in U.S. manufacturing data while a gauge of bonds fell for the first time in seven weeks. Argentina and Ecuador reached agreements with their top holders to restructure billions of dollars in overseas debt.
The following is a roundup of emerging-market news and highlights for the week through Aug. 9: