Emerging Markets Pulse — 2026-10-09
Emerging market assets declined as Middle East tensions drove oil prices higher and the dollar strengthened, causing the MSCI EM index to fall 0.9%. India’s central bank executed its first rate hike in nearly four years, raising the benchmark to 5.5% amid rising inflation expectations and a sharp drop in foreign exchange reserves. The Institute of International Finance reported a massive $26.3 billion capital outflow from EM bonds and equities in September, driven by hawkish Federal Reserve signals.
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