Emerging Market Currencies and Stocks Rally on U.S.-Iran Peace Deal Expectations, MSCI Index Up 0.5%

On Friday, emerging market currencies and stocks surged amid growing expectations for a U.S.-Iran peace deal. The MSCI Developing Markets Currency Index rose 0.5%, while the emerging market stock index climbed 3.1%. Iran's Foreign Minister Abbas Araghchi stated the agreement with the U.S. is "closer than ever," and a senior Trump administration official said the probability of the deal being signed soon is 80–85%. The optimism pushed oil prices lower, boosting risk assets including the Korean won, which strengthened nearly 1% against the U.S. dollar.
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