Emerging market currencies strengthen as U.S. inflation eases fears of Federal Reserve rate hikes.

U.S. core inflation data indicates that the underlying price pressures remained moderate in July, while emerging market currencies continued to rise. After the inflation data was released, the dollar weakened, and most developing countries' currencies appreciated, with the Chilean peso and South African rand leading the charge. Boosted by a surge in Asian chip manufacturers, emerging market stock markets rose; the strong performance of AI infrastructure companies has renewed market interest in tech stocks.