Currencies eye first weekly drop in four as dollar preferred bet

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Emerging market currencies were set for their first weekly fall in four on Friday after hawkish signals from the U.S. Federal Reserve kept the dollar in favor, while stocks edged higher in anticipation of stimulus measures from China.

The MSCI’s index for emerging market currencies were flat, eying weekly declines of 0.4% and breaking a three-week winning streak.

Markets digested minutes from the Fed during the week, which highlighted the need for more interest rate hikes through the year and lifted the dollar index close to 100, its best level in nearly two years.

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