Economics
August Turns Ugly for Emerging Markets as Currency Crises Spread
- MSCI EM FX index set for longest monthly losing run since 2015
- Argentine peso slides; central bank raises key rate to 60%
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Emerging-market assets are headed for a monthly loss as declines in Argentina and Turkey sparked fears of global contagion and amid a renewed intensification of U.S.-China trade tensions.
The MSCI EM index of currencies was down 2.2 percent for August as of 1:33 p.m. in London, poised for a fifth monthly loss, the longest stretch since September 2015. South Africa’s rand headed for its worst August on record, while the lira rebounded on Friday after Turkey raised taxes on dollar deposits. In Asia, the Indonesian rupiah slid to its lowest since 1998, while the Indian rupee was set for its biggest monthly drop in three years and a fresh record low.