Emerging Stocks Gain Sixth Day as Fed Rate Speculation Builds
- Futures traders practically rule out an increase this month
- Currencies rise to strongest against dollar since mid-August
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Emerging-market stocks posted their biggest six-day rally since 2011 and a gauge of currencies jumped to a seven-week high as investors became increasingly confident that the Federal Reserve will refrain from increasing U.S. interest rates until next year.
Traders of Fed-funds futures are practically ruling out a move in benchmark U.S. borrowing costs after a policy meeting Oct. 28, helping developing-nation equities rebound from the worst quarter in four years. The Fed’s near-zero interest rates have buoyed demand for riskier assets, and an increase is expected to lure money away as the dollar strengthens.