Emerging Assets Waver as Debate on Powell Whiplashes the Dollar

July 16, 2025, 8:59 PM UTC

Emerging-market currencies swung wildly on Wednesday, mirroring moves in the dollar on fears President Donald Trump would oust Federal Reserve Chairman Jerome Powell.

Reports that Trump had discussed the move in a meeting with congressional Republicans sent the dollar tumbling in the morning and a gauge tracking developing world currencies spiking higher. Both the dollar and emerging currencies then pared the move after Trump told reporters at the Oval Office that he is “very unlikely” to fire Powell.

The MSCI EM currency index ended the day down 0.1%, after falling more than 0.4% at one point. The dollar slid 0.3% ...

Learn more about Bloomberg Law or Log In to keep reading:

See Breaking News in Context

Bloomberg Law provides trusted coverage of current events enhanced with legal analysis.

Already a subscriber?

Log in to keep reading or access research tools and resources.