The dollar index slipped 0.1 percent, extending its previous session’s losses and rising in an index of emerging market currencies. 0.7 percent higher.
EM currencies recovered 3.6 percent in November after five consecutive months of losses, posting their best monthly performance since March 2016.
MSCI’s index for emerging market shares rose 0.8 per cent, capping its sharp comeback. The index posted its best monthly performance in November since May 2009, with a recovery of 14.6 per cent in the previous month.
“Rising market confidence that the Fed is likely to slow the pace of tightening has largely resulted in a weaker dollar, driving demand for riskier assets, as reflected in EM stocks, which registering the strongest gain in the whole of November so far this year,” said Piotr. Mattis, Senior FX Analyst at InTouch Capital.