Emerging Currencies Weaken as US-Iran Standoff Lifts Dollar
Most emerging-market currencies weakened against the dollar on Monday as hopes for a US-Iran deal to reopen the Strait of Hormuz faded, causing Brent crude prices to rise over 5%. The South Korean won, Hungarian forint, and Brazilian real experienced significant losses, while the South African rand declined 0.3%, reflecting increased market caution. Traders are now focused on upcoming US inflation data, which could influence Federal Reserve policy and further impact emerging currencies.