Emerging Market Currencies and Stocks React to U.S. Tariff Developments

Emerging market currencies remained subdued on Wednesday, with stocks showing a mixed response as investors weighed trade developments emerging from the United States just before the August 1 tariff deadline.

U.S. President Donald Trump announced a 19% tariff on Indonesian goods, down from 32%, as part of a new agreement, while other smaller countries may also experience tariffs exceeding 10%.

Markets show cautious optimism, suspecting tariffs may not fully materialize as previously threatened, while mixed reactions from emerging European currencies and steadying indexes keep investors on edge.

(With inputs from agencies.)