Emerging Currencies Slide to Two-Week Low as China Stocks Drop
- Ruble, rand weaken as crude prices decline on supply outlook
- Energy companies lead decline in MSCI Emerging Markets Index
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Emerging-market currencies fell to a two-week low and stocks retreated as falling commodity prices and a slide in Chinese shares refocused concern on slowing growth in the world’s second-largest economy.
A gauge tracking 20 developing-nation currencies weakened 0.6 percent, dropping for a fourth day. South Africa’s rand and Russia’s ruble slumped at least 1.4 percent against the dollar as oil prices retreated. The real fell for a second day on speculation Brazil will change this year’s budget target to a deficit from a surplus, underscoring its inability to shore up government finances. The Shanghai Composite Index slid from an eight-week high. Gazprom PJSC and other Russian companies paced declines among developing-country energy stocks.