Emerging FX Jumps as Moody’s Downgrade Undermines the Dollar

An index for emerging-market currencies advanced on Monday as the greenback fell following Moody’s Ratings downgrade of US government debt, while lawmakers in Washington debated more tax cuts.

Eastern and Central European currencies led the gains, propelled by a stronger euro as traders looked to move cash out of US assets. Romania’s currency and bonds outperformed peers, after a centrist candidate won the presidential election, defeating a far-right Donald Trump loyalist that had investors on edge.