Emerging-Market Rally Fades as Dudley Comments Spur Fed Concern
- Developing-nation stocks little changed after eight-day rally
- Futures trading shows increased odds of Fed increase this year
This article is for subscribers only.
A rally in emerging-market assets lost its momentum after a Federal Reserve official said investors are underestimating the likelihood of a U.S. interest rate increase this year.
The MSCI Emerging Markets Index halted an eight-day advance after New York Fed President William Dudley said policy makers could raise borrowing costs as soon as next month. A gauge of developing-nation exchange rates pared its gain as futures trading showed increased odds for a U.S. interest-rate move. Turkish, Mexican and Hungarian stock benchmarks fell at least 0.7 percent. The South African rand weakened.