What’s going on here?
Emerging market currencies are shining after Scott Bessent’s nomination for US Treasury Secretary by President-elect Donald Trump suggests a shift in financial policy, easing fears over tariffs.
What does this mean?
Wall Street veteran Scott Bessent’s nomination as Treasury Secretary has softened the dollar, lifting emerging market currencies and assets. Analysts, including Rabobank’s senior FX strategist, believe Bessent may mitigate concerns over harsh tariffs, altering usual market reactions to Trump’s policies. This is evident in currency trends – the South African rand and Czech crown are strengthening, while Hungary’s forint is falling against the euro. In Romania, political turmoil is affecting long-term, dollar-based debt, causing significant market ripples. Meanwhile, Israel’s shekel is firming up as the Bank of Israel is expected to keep interest…
