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[After the USD/CNH exchange rate fell below the 7.14 mark on Tuesday, it continued to fall below the 7.13 mark on August 21.]

After emerging market stocks as a whole recorded their best weekly performance since April this year last week, the emerging market currency index hit a record high this week. Emerging market bonds were also generally sought after by global funds, among which the bond markets of emerging Asian economies attracted the most attention.

Emerging market currency index hits new high

As the market re-bets on a soft landing of the US economy and the expectation that the Jackson Hole Central Bank Annual Meeting later this week will strengthen the market's expectations of the Fed's interest rate cut, emerging market currencies saw a general rise at the beginning of Monday. In the early morning of August 20, the MSCI Emerging Market Currency Index hit a record high of 1763.22 points. The Bloomberg Asia Dollar Index, which measures the strength of Asian currencies, also rose to a near one-year high.

A series of emerging market currencies, including the Brazilian real, Chilean peso, Korean won, Malaysian ringgit, South African rand, and Thai baht, have all risen by more than 1% against the US dollar this week. Among them, as global markets are increasingly optimistic about South Africa's pro-business ruling coalition, the South African rand has appreciated to a one-year high against the US dollar. The US dollar also fell to 15,438 against the Indonesian rupiah on Tuesday, and has fallen by nearly 5% this month, nearly erasing its gains since the beginning of the year. After the US dollar fell below the 7.14 mark against the offshore renminbi on Tuesday, it continued to break below the 7.13 mark on August 21. The Thai baht also rose by more than 3% against the US dollar in August, nearly erasing its losses since the beginning of the year.