As the Dollar eased on Monday, emerging market currencies firmed on hopes of a summit between the U.S. and Russian leaders over Ukraine, according to French President Emmanuel Macron.

The Russian Rouble rose 0.7% after ending last week flat, whilst the Dollar index – measuring the currency against six major rivals – declined 0.3% on improvements to risk appetite. In addition, the MSCI's emerging markets currency index rose 0.1%.

Mounting tensions between Russia and Ukraine have dominated asset price action for over a week.

"The move into positive territory only came about due to an agreement in principle for U.S. President Biden, and Russian President Vladimir Putin to meet to avert a further slide into hostilities," according to Michael Hewson, chief market analyst at CMC Markets UK.

The South African Rand struggled for direction after trimming early gains, as local investors awaited the 2022 budget which is scheduled to be presented to lawmakers by Finance Minister Enoch Godongwana on Wednesday, Reuters reports.

Furthermore, the Turkish Lira rose 0.1%, whilst stocks in the region gained 1.3%. The number of foreign visitors to the country rose by 151% in January compared to the year before, to 1.28 million, as the pandemic recovery continues.

Elsewhere, the Polish Zloty increased 0.35% to 4.5152 per Euro, bolstered by last month’s robust retail sales data, and as bets increased for additional rate hikes. "Overall, this all adds up for us to an environment in which the Monetary Policy Council (MPC) will continue to tighten monetary policy. We expect the main interest rate to be raised by 50 basis points in March," said Adam Antoniak, senior economist at ING Bank Slaski.