EM Currencies Edge Lower As Global Politics Send Dollar Soaring

A gauge of emerging-market currencies slid for a third day on Thursday, with the dollar rallying as traders monitor political turmoil in Europe and Japan while they navigate the market without US economic data.

Dragged down by European names, the currency index hit a two-week low in afternoon trading, but pared losses by the end of the session. The Philippine peso was also among the worst performers after a surprise interest-rate cut. Meanwhile, the Colombia peso led gains, followed by the Chinese offshore yuan as some Asian markets resume activities after a holiday.