Emerging Currencies Gain as Yellen Signals Gradual Rate Policy

Argentina’s peso led gains in emerging-market currencies and stocks ended a two-day decline as Federal Reserve Chair Janet Yellen suggested that the central bank might delay interest rates hikes, helping bolster demand for riskier assets.

A gauge of 20 currencies rose for the first time in four days. Stocks in Hungary and the Czech Republic led the rebound in equities. Shares in India fell to the brink of a bear market, while most Asian bourses remained closed for lunar New Year holidays. Turkish bonds gained and sent 10-year yields down the most in a week. The premium investors demand to own developing nation debt over U.S. Treasuries fell from the highest since 2009.