Emerging Currencies Weaken as Fed Comments Stoke Rate Concern
- Rand to real drop as Bullard says near-zero rate unneeded
- Price swings in equity gauge at the widest since 2012
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Emerging-market currencies weakened against the dollar and stock volatility hovered near the highest level since March 2012 as Federal Reserve officials signaled in speeches that a December increase in U.S. interest rates is likely, a move that would damp demand for riskier assets.
Exchange rates in commodity-exporting nations from Colombia to Brazil, Russia and South Africa led declines among 24 developing-nation peers as raw-material prices dropped. Investors sold Chinese shares on the mainland in favor of Hong Kong-listed stocks, taking advantage of the valuation difference between them. The MSCI Emerging Markets Index was little changed at 833.74 after fluctuating between a 0.1 percent decline and a 0.5 percent gain.