Emerging Markets Pulse — 2026-10-07
Emerging market assets rallied on October 5-6 as softer US jobs data cooled Federal Reserve rate-hike expectations and oil prices declined, lifting sentiment across equities and currencies. The dominant macro theme remains the tension between easing Fed pressure and persistent global bond sell-offs, with the dollar remaining resilient despite earlier weakness forecasts. The single biggest country-specific story is India’s Reserve Bank delivering its first rate hike in nearly four years to combat rising inflation expectations, causing the rupee to near record lows amid significant FX reserve outflows.
5 min read/15 sources
