Emerging Assets Drop With Commodities as Fed Rate Bets Increase

Emerging-market currencies weakened for a second day and stocks fell from this year’s high as slumping commodity prices weighed on assets of exporters and increasing wagers that the Federal Reserve will raise U.S. interest rates as soon as the next quarter damped demand for risk.

Brazil’s real led declines among 24 peers, weakening 2.9 percent on speculation President Dilma Rousseff’s government is boosting efforts to stay in power amid a corruption investigation. The rand fell 2.5 percent, as police said South Africa’s finance minister failed to meet a deadline to answer questions in a probe into the national tax agency. The ruble fell as Brent crude traded below $40 a barrel. The offshore yuan weakened after China’s central bank cut its daily reference rate by the most since January. Persian Gulf shares capped the longest stretch of losses in two months.