Economics
Massive Argentine Peso Plunge Deepens Emerging-Market Selloff
- Peso tumbles amid reports of central bank departures
- Brazil’s real extends drop as traders snub record intervention
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The brutal tumble of Argentina’s peso added to the list of concerns over the ability of developing economies to defend their currencies as the era of cheap money wanes. Emerging-market assets extended losses a day after the Federal Reserve’s more hawkish signals.
A measure of currencies in developing nations slid to the lowest since December, while the MSCI Emerging Markets Index sank -- led by industrial and technology companies. The Argentine peso slumped more than 6 percent on reports of changes at the country’s central bank and after truck drivers began a strike. The Brazilian real dropped a fourth day as the impact of a massive sale of foreign-exchange swaps was short lived.