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Emerging-Market Currencies Say Goodbye to 2018 Gain

  • MSCI EM FX index erases year-to-date gains, following stocks
  • Trump announces U.S. withdrawal from Iran nuclear accord
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On the day that a key gauge of currencies in developing economies erased its gains for the year, the voices saying it may be the start of a deeper selloff are growing louder.

“Risk factors such as the Iran deal have emerged on top of an already weak environment for emerging markets because of the rising dollar and U.S. yields,” said Motoko Miyano, deputy general manager of the treasury in Bangkok at Sumitomo Mitsui Banking Corp. “Foreign investors have been selling emerging markets, and that’s starting to deepen the selloff in emerging-market currencies.”