Emerging Currencies Shake Off Early Rout as Dollar Retreats

Most developing-world currencies reversed early losses on Tuesday as the dollar’s initial strength faded and global markets rebounded from a selloff driven by geopolitical tensions and concerns over the disruptive impact of artificial intelligence.

Several emerging-market currencies traded higher against the dollar, with major Latin American units rebounding sharply. The Chilean peso was among the best performers, rising 0.6%. Mexico’s peso also recovered from Monday’s losses, when assets were rattled by the killing of a drug kingpin that triggered scenes of unrest across the country.