A gauge of emerging-market currencies trimmed its earlier losses on Thursday following a report indicating a ceasefire agreement between Israel and Hezbollah in Lebanon. The index, which had fallen as much as 0.4% earlier, was down 0.2% as of 9:55 a.m. New York time. This recovery was observed despite thin trading volumes due to holidays in the US and Asia.
Among the outperformers were South Korea's won and Brazil's real. The news of a potential truce helped alleviate some market anxieties, contributing to the retracement of currency losses.
This development comes amidst broader geopolitical issues impacting markets, including an interim agreement between the US and Iran and ongoing discussions about a permanent deal, which has contributed to oil price volatility.
