Emerging-market equities are sinking and the U.S. dollar is routing developing-nation currencies to an extent not seen since right after Donald Trump’s shock election.
This time, it’s the U.S. president’s plan to dramatically cut tax rates for businesses that’s causing the undoing. Emerging-market traders, who fear the overhaul will spark the repatriation of dollars, could be forgiven for having a flashback to November, when the president’s win and promise of pro-business reforms set off a 7 percent rout in the asset class.
