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Emerging Markets Fall Before Fed Decision

Emerging Markets Fall Before Fed Decision

Emerging market assets declined ahead of the anticipated Federal Reserve decision in September 2026, with the MSCI index for developing country currencies falling by 0.3% amid expectations of a potential 25 basis point increase in U.S. interest rates following a rise in U.S. core inflation. The Chilean peso and Hungarian forint both depreciated by over 1% against the dollar, while the Korean KOSPI index dropped more than 3%, amid concerns over the impact of oil price volatility and global tensions on currencies and equities. This comes amidst a continuous decline in emerging market stocks and expectations of ongoing pressure on markets due to energy market fluctuations and the global economy.

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