Archive · 4 Oct 2025
Emerging Market Currencies Gain as Shutdown Dampens Volatility
Emerging market currencies are doing a bit better this week.
This is because the US government has shut down, which is delaying important economic news.
This lack of news actually makes things calmer in the markets, but makes it harder for people to know how things are going.
Some experts think the shutdown could hurt the US dollar if it lasts a long time.
Investors are also putting more money into these markets, especially into things like technology.
Emerging-market currencies are on track for a modest weekly gain.
US government shutdown delayed key economic data releases.
JPMorgan Emerging Market Volatility Index is at its lowest level in over a year.
Emerging-market stocks are up more than 3% this week.
Investors have put money into EM-dedicated debt funds for 24 straight weeks.
- Who
- Emerging-market currencies
- What
- Showed modest gains as US government shutdown delayed key data, reducing volatility.
- When
- Ongoing, with data from the week of Oct 1st
- Where
- Global emerging markets
- Why
- US government shutdown delayed key economic data and reduced market volatility; AI sector boosted tech stocks.
- MSCI EM Currency Index
- Little changed
- JPMorgan EM Volatility Index
- Lowest levels in over a year
- EM Equity Index
- Up 0.4%
- EM Debt Fund Inflows (Week of Oct 1)
- $3.7 billion
- EM Debt Fund Inflows (Year-to-Date)
- Over $50 billion
Sources
Global Markets Today: Nikkei 225, Kospi trade mixed amid US government shutdown
Asian stocks edge up after tech powers Wall Street
Recommended stocks to buy on 3 October—top stock picks from market experts
How will markets open today? Dow Jones up, GIFT Nifty flat, and 6 other cues to watch at this hour
Indian stock market: 7 things that changed for market overnight- Gift Nifty, Wall Street’s record close to Tesla shares
