Economics
Emerging Markets Extend Declines After Fed Lifts Outlook to Four Hikes
- FOMC raises rates, boost outlook to four hikes in 2018
- ECB’s meeting Thursday adds to growing list of risks
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Stocks and currencies in emerging markets extended losses after the Federal Reserve raised interest rates and upgraded its forecast to four hikes in 2018 -- moving further away from the era of cheap money that has bolstered riskier assets in the past decade.
Equities in developing nations halted a two-day rally, while a measure of currencies breached a key technical level seen as a harbinger for more losses. The Argentine peso slumped as the impact of the Finance Ministry’s announcement to sell as much as $7.5 billion in the foreign-exchange market was short lived. Meanwhile, the Brazilian real erased losses after the monetary authority called for a third swap auction to bolster the currency.