Major emerging market currencies rose against USD on Friday, making positive weekly gain against US currency as risk-taking mood remained high this week.

The MSCI Emerging Markets Index rose 0.1% on Friday, targeting gains for the third straight week as major factors of USD support flagged this week. Among those are declining Treasury yields and easing expectations that the Fed will make hawkish hints on the meeting next week.

However, the new wave of coronavirus has hurt emerging market assets. Investors pulled $ 1.3 billion from emerging market equities in a week and poured $ 1.4 billion into European equities, according to BofA data.

The Indian rupee saw major drop over the week amid a record surge in COVID-19 positivity rate and prospects of even tighter lockdowns. The Turkish lira was the worst performing currency in Europe, the Middle East and Africa this week dropping more than 3% against USD on Friday.

The lira is under pressure from the likelihood of further deterioration in relations between Washington and Ankara, as the US reportedly prepares to officially recognize the massacre of Armenians by the Ottoman Empire during World War I as genocide.

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