Emerging-market currencies slipped on Monday as investors moved cautiously ahead of key U.S. economic data. The softer tone in risk assets came as rising U.S. Treasury yields made dollar-denominated assets more attractive and weighed on demand for higher-yielding emerging-market holdings.

The pressure on currencies also reflected a wider shift in capital flows. As global borrowing costs stay elevated, sovereign debt issuance from BRICS economies has slowed, suggesting that governments are finding it more expensive to tap international markets.

Analysts say the combination of stronger U.S. yields and tighter financing conditions could keep emerging markets under strain in the near term. For many developing economies, the balance between attracting investment and managing debt costs remains fragile.

The latest moves highlight how sensitive emerging markets remain to U.S. monetary and data expectations. Any further rise in yields could deepen the challenge for borrowers already facing higher costs and more selective investor demand.