LONDON, Nov 22 (Reuters) – Emerging assets rebounded on Tuesday off multi-month lows, although sovereign debt struggles on both sides of the Atlantic continue to constrain risk appetite.

India’s rupee sank to an all-time low, the casualty of growing investor concern over economies with large current account deficits, while Egyptian share trading was halted and its pound currency fell to seven-year lows as bloody protests against military rule entered their fourth day.

Meanwhile, Hungary completed a government debt auction at slightly lower premiums after confirmation from the IMF and the EU that Budapest is seeking precautionary financial aid.

After slipping for five successive sessions, the emerging equity benchmark firmed 0.5 percent off its weakest levels in nearly a month, while emerging sovereign debt spreads narrowed 6 basis points to 381 bps over U.S. Treasures.

Sentiment remains shaky as some doubt the ability of politicians in Europe and the U.S. to put aside their differences to tackle their huge debt burdens.

U.S. lawmakers have abandoned their high-profile effort to rein in country’s ballooning debt while Spanish borrowing costs hit their highest in 14 years amid investor frustration over the lack of detail on the austerity plans of the government-elect.

“Appetite for emerging markets is being limited by what’s happening in Europe and the U.S. The countries suffering the most are those with current account deficits because of the ongoing deleveraging from the European banking sector,” said Sebastian Barbe, head of emerging currencies and fixed income at Credit Agricole.