May 5 Reuters Most emerging market currencies eased on Wednesday against a stronger dollar as hints of the potential for higher U.S. interest rates weighed on highyielding assets, while investors eyed continuing rises in coronavirus infections in a number of large markets.
In India, where cases and the number of deaths from COVID19 have soared in the past month, banks pulled the Mumbai stock market higher after the central bank rolled out measures to support the economy, including more debt moratoriums.
The Chinese yuan dipped 0.1 after reports that G7 members were aiming to take a harder line against Chinas forced use of labour in its northwestern Xinjiang province.
In contrast to India and other developing countries still struggling with the pandemic, the U.S. economy quickly got backup to run at full steam and Treasury Secretary Janet Yellen said on Tuesday that rate hikes may be needed to prevent overheating and quell coming inflationary pressures.
There are concerns on the part of many market participants … that inflation might not just rise on a temporary basis but permanently, said Esther Reichelt, an analyst at Commerzbank.
This could force the Fed to normalise its monetary policy more quickly than it is expecting right now.
MSCIs indexes of emerging market currencies and stocks fell for the fourth consecutive session, also weighed down by a jump in coronavirus infections in Thailand and Taiwan, one of the largest weights in the indexes along with China…