Emerging Markets Cap Worst Week Since March on Inflation Fears

Emerging-market assets tumbled Friday, pushing both stocks and currencies to their worst weekly drop since early March, on renewed concern the conflict in the Middle East will fuel global inflation and force central banks to pursue higher interest rates.

The MSCI EM Currency index slipped 0.4%, with the Chilean peso, the Brazilian real, and the Hungarian forint falling at least 1.4% each. The index closed the week 0.9% lower, recording its worst weekly drop since March 6 as the dollar rallied for five consecutive sessions.