Romanian Assets Slide After Far-Right Presidential Win; Emerging Markets Rise Against Weaker Dollar

Romanian assets experienced a downturn after a far-right leader won the first round of the presidential election. The leu slipped 1.9% to below 5 per euro, and longer-dated euro bonds tumbled. This development raises concerns about Romania's external policy and potential government instability. Across emerging markets, currencies and stocks generally rose against a weaker dollar. The Taiwanese dollar steadied after a surge, impacting Asian peers like the Chinese yuan and South Korean won. Investors are exiting long-held U.S. positions, influencing carry trades. The South African rand strengthened following positive PMI data indicating stabilization in the private sector. Investors are closely watching upcoming central bank meetings in the US, Brazil, Poland, and the Czech Republic, anticipating key policy decisions.