Emerging-market currencies have hit a fresh record, benefiting from a weaker dollar which has made carry trades more attractive. This positive trend occurred despite an increase in oil prices. South Korea's technology stocks notably led a rebound in developing-nation equities.
The appeal of carry trades is being bolstered by the US Treasury's announcement of plans to increase government bond buybacks. This move is contributing to a weaker dollar, making the greenback cheaper to use as a funding currency for investments in higher-yielding emerging market currencies.
