Photographer: Andrew Harrer/Bloomberg

Fed Rate Speculation Casts Shadow on Emerging Currencies: Chart

Investors are bracing for wider swings in emerging-market currencies as Federal Reserve officials signal they may raise U.S. interest rates as soon as next month. A gauge of expected exchange-rate volatility over the coming three months now exceeded its developed-market equivalent, following a period of about six weeks when the opposite was true. A measure of developing-nation currencies has declined 2.8 percent since April 29, set for its biggest monthly decline since August, as futures traders doubled the odds of tighter U.S. policy by July to 54 percent.

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