Emerging Markets Brace for U.S. Inflation Data Amid Currency Fluctuations

Emerging market currencies face pressure as traders await U.S. inflation data. The Russian rouble regains ground amidst potential new sanctions. Romanian politics and economic indicators influence regional markets. South African inflation impacts monetary policy. China considers yuan devaluation amid U.S. trade tensions.

Most emerging market currencies dipped on Wednesday as traders anticipated new U.S. inflation data, and the Russian rouble clawed back recent losses.

The dollar lost up to 1.5% against the rouble, which had seen a steep drop in the previous session. Reports indicate the U.S. considers fresh sanctions on Russia's oil trade ahead of Donald Trump's return to the presidency.

On the economic front, anticipation surrounds the U.S. Consumer Price Index (CPI) figures that could influence Federal Reserve actions next week. Meanwhile, Romania's currency fluctuated as its inflation surpassed expectations, and South Africa's numbers failed to excite despite staying below central bank targets.

(With inputs from agencies.)