On Tuesday, currencies from Central and Eastern Europe outpaced other emerging-market assets as the euro gained against the US dollar. This shift followed former President Donald Trump’s decision to remove Federal Reserve Governor Lisa Cook, which triggered market concerns about inflation and the autonomy of the US central bank. n nAs a result, the dollar and long-dated US bonds declined, while the euro strengthened. The Czech koruna, Hungarian forint, and Polish zloty each appreciated by a minimum of 0.3% versus the dollar. In contrast, most currencies in Latin America lost value, although the Mexican peso showed resilience and diverged from the broader regional trend. Indices tracking equities and currencies in emerging markets ended the session lower. n— news from Bloomberg
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Hungary, Czech FX Gain As Traders Flock to Euro on US Concerns
Currencies from Central and Eastern Europe outperformed emerging-market peers Tuesday as the euro advanced against the dollar following President Donald Trump ’s move to fire Federal Reserve Governor Lisa Cook . n nThe common currency pushed higher as the dollar and long bonds in the US fell after Trump’s move to oust Cook stoked concerns over inflation and central bank independence. The Czech koruna, Polish zloty and Hungarian forint gained at least 0.3% each against the greenback. Most Latin American currencies weakened though the Mexican peso bucked the trend. The benchmark gauges for developing-world stocks and currencies fell for the day.