finance

Emerging Asian currencies outperformed their Latin American counterparts in August, buoyed by a weaker dollar. The Philippine peso (PHP) saw its best monthly gain in 18 years, while the Indonesian rupiah (IDR) reached its highest level in over four years. In contrast, Latin American currencies like the Mexican peso (MXN) faced significant declines due to domestic challenges and fluctuating commodity prices. Despite this, the softer dollar and hopes of a U.S. economic soft landing offer emerging markets some relief, creating opportunities to cut interest rates and focus on domestic growth. According to Ehsan Khoman, head of emerging market research at MUFG, central banks in countries such as the Philippines, Singapore, South Africa, South Korea, Taiwan, and Turkey are expected to follow the lead of early rate-cutters in Latin America and Central and Eastern Europe for the remainder of the year.