Most emerging-market currencies weakened on Monday as investors recalibrated their expectations for U.S. monetary policy. Recent economic data out of the United States has pushed traders to rethink how quickly the Federal Reserve may be able to cut interest rates later this year.

The shift in rate expectations matters for developing economies because higher-for-longer U.S. rates can support the dollar and draw capital away from riskier assets. That often leaves emerging-market currencies more vulnerable, especially when global investors become cautious about growth and inflation trends.

Market participants were watching for fresh signals on inflation, growth and central bank guidance, all of which could influence how money flows across currency markets in the coming weeks. For now, the stronger dollar tone has kept pressure on a broad group of emerging-market currencies.

Analysts say the direction of U.S. rates will remain a key driver for global currency trading through the rest of the year, with any delay in Fed easing likely to keep stress on developing-market assets.