Trump's decisions to postpone the imposition of fees increase the performance of emerging market currencies

The emerging market currency index has increased after it has strengthened US President Donald Trump’s decision to extend the deadline for hard customs duties against the European Union, in the risk -glorious risk in a session characterized by low trade volumes, due to holidays in the United States and the United Kingdom. The comprehensive MSCI index of emerging market currencies, which includes the total returns, including the benefits obtained on these currencies, increased by 0.4% to record a new record, although the performance of currencies in developing countries was different in the light of poor liquidity. As for the dollar index, it has thrown near its lowest levels in about two years. The moral of risk demand was also clear in some stock markets, despite the decline in the global “MCI” index for stocks. The South Korean index recorded a remarkable 2%performance, while the most important “Neferti 50” index in India increased by 0.6%. “We are really starting to see factors in the same direction,” said Amy Eldenberg, head of equity investments at emerging markets at Morgan Stanley Investment Management. She added: “We saw a great weakness in the dollar, and it gave a strong boost to some of our markets.” These movements have a commercial calm on the two banks of the Atlantic, after Trump extended the final deadline for the imposition of customs duties on the European Union to July, while the European Union agreed to accelerate negotiations with the United States to avoid a passing trade war for the Atlantic Ocean. The enthusiasm for the US dollar has fallen this year due to the unexpected commercial policy in Washington and the concerns associated with financial deficit, factors that are harmful to investment in the United States. “Trump’s unexpected and financial policy means that investors have to hedge more carefully about their exposure to US assets and regain their investments of them,” says Henrik Gulberg, the total economy strategy at the Kox Partners Limited Company. The Polish Zeloti was the best achievement among the emerging market currencies on Monday, while Brazilian Riyal’s performance was poor, amid constant concern about fiscal policy and new tax procedures. The Brazilian government’s plan to increase a tax on financial transactions has been criticized, while Finance Minister Fernando Haddad canceled a 3.5% tax on foreign investment from Brazilian funds. Haddad told reporters on Monday that the government will be decided on new financial measures by the weekend. Customs duties and Ukraine, although Trump’s decision to extend the deadline for customs on the European Union, supports the currencies of emerging markets, says Pyoter Mattis, chief analyst at “Antoch Capital Markets” that “the profits are still relatively modest.” He added: “This can be attributed to the fear that the customs imposed on Trump could lead to an inflationary recession on the US economy, which is the most important commercial partner for many emerging countries.” In a separate context, Trump said he was “surely” considering new sanctions against Russia, in light of the increase in violence in Ukraine. Trump made these statements to reporters on Sunday and pointed to the growing frustration of Russian President Vladimir Putin, and of the peace negotiations. During the year 2025, the Ukrainian dollar bonds recorded the worst performance among debt markets in emerging countries, with the diminishing opportunities to reach a peace agreement, in a sharp reflection of the profits they achieved earlier in the year, when the Betting Rights made Ukrainian guilt.