Emerging Market Assets Surge Amid Dollar Fluctuations and Trade Policy Drama

Emerging market assets looked to finish the week on a high note, bolstered by a weakening dollar, as investors navigated the trade maneuvers of U.S. President Donald Trump which dominated market sentiment through the week.

The Russian rouble tumbled 2.6% against the dollar ahead of an anticipated central bank decision on interest rates, with many analysts suggesting a potential rate cut due to economic slowdown and decelerating inflation. Meanwhile, the MSCI index of emerging market currencies remained near a record high, suggesting optimism among investors.

Despite challenges, emerging markets attracted capital inflows as global investors sought diversification amidst erratic U.S. trade policies. In Central Europe, Poland's assets showed signs of strain, while India's market climbed following a significant rate cut by the Reserve Bank of India, indicating proactive steps to stimulate growth.

(With inputs from agencies.)