Live Updates > Live Update Details
2026-09-15 17:44:08
[Oil Prices Push Up US Treasury Yields, Pressure Emerging Market Assets] ⑴ Emerging market currencies generally fell on Tuesday, while the US dollar strengthened, after rising oil prices pushed US benchmark Treasury yields to near 20-year highs, and emerging market equities also declined. ⑵ An index tracking emerging market currencies fell 0.4%, potentially its fourth consecutive day of decline, while the US dollar index strengthened, hovering near a two-week high. ⑶ The South Korean won fell 1.2%, and the Indian rupee fell 0.4%, reaching their weakest levels in over a month. Rising US Treasury yields enhance the attractiveness of the US dollar and increase the debt servicing costs of emerging market debt. ⑷ The market is also focused on the Federal Reserve's two-day policy meeting starting later that day, with traders pricing in a 94.5% probability of a 25 basis point rate hike. ⑸ An investment executive stated that if the US raises interest rates, a stronger dollar often draws liquidity from emerging markets, as funds are drawn back to the US and dollar-denominated assets. ⑹ Oil prices rose nearly 2% as concerns about supply disruptions continued following attacks on Saudi energy infrastructure, disrupting east-west pipelines and further dampening risk appetite. (7) Emerging market equities generally declined, with related indices falling 1% to a three-week low. South Korean stocks continued their decline, falling 0.9%. (8) Indian stocks fell 0.7% and 0.6%, as retail inflation accelerated further in August, with price pressures spreading from food and transportation, reinforcing expectations of a central bank rate hike next month. (9) Emerging European equities mostly declined, with Warsaw stocks falling 1.2% and Hungarian forints falling 1.2%. Polish central bank officials indicated that interest rates might remain in place until the end of the year, but a rate hike in the first quarter of 2027 could not be ruled out if commodity shocks have a lasting impact on inflation. (10) In frontier markets, the World Bank president stated he would meet with the Senegalese president to discuss the country's plans for debt restructuring within the G20 framework.
