Emerging-market currencies hit a fresh record as a weak dollar added to the appeal of a popular trade, offsetting a fresh jump in oil prices. South Korea's technology stocks led a rebound in developing-nation equities, while the so-called 'Bessent Put'—named after U.S. Treasury Secretary Scott Bessent—continued to provide downside protection for risk assets. The Federal Reserve's dovish pivot has fueled carry trades across emerging markets, with investors piling into higher-yielding assets funded by cheap dollar borrowing.

Market participants are increasingly confident that Bessent will intervene to stabilize markets if volatility spikes, creating a safety net that encourages speculative positioning in emerging-market assets. This perception has been particularly supportive for currencies like the Mexican peso and Indian rupee, which have benefited from sustained foreign inflows.

Oil prices surged again this week, adding upward pressure on import-dependent emerging economies, but the broader trend remains bullish for EM FX. Analysts at major banks expect the rally to continue through the summer, citing resilient global growth forecasts and improving commodity terms of trade for developing nations.