Economics
Emerging Currencies Drop as Ambiguity on Fed Timing Hurts Stocks
- Bomb attack in Turkey pushes lira to its all-time low
- Mexico's equity index rises as Brazil closed for holiday
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Emerging-market currencies weakened to an all-time low and stocks fell as investors grappled with the prospect of higher U.S. interest rates. Malaysia’s ringgit tumbled to a 17-year low and a bomb attack in Turkey sent the lira plunging to a record.
A gauge tracking 20 developing-nation currencies declined for a fifth straight day, losing 0.5 percent, as the ringgit depreciated 1.6 percent and the lira slid 0.7 percent. Investors have dumped riskier assets since China’s shock devaluation almost a month ago worsened the outlook for trade with the world’s second-largest economy, while also making a Federal Reserve interest-rate increase this month less certain.