China’s Weaker Yuan Sends Ripples Across Emerging Market Currencies
- Traders focus on Brazil assets amid rate hike, Lula’s health
- Developing-nation equity gauge slides a second consecutive day
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An index of emerging-market currencies edged lower after trading flat most of the session, following fresh US inflation data that solidified bets that the Federal Reserve will lower interest rates.
The release of the consumer price index report offset some of the slump sparked by a weakening yuan earlier in the session, which dragged the MSCI currency index as much as 0.2% lower. Eastern European and Asian currencies led losses.