Treasury Yield Surge Sends Emerging-Market Currencies Tumbling
- Greenback may still weaken, but not continuously: State Street
- Risk-sensitive currencies will likely remain on back foot: TD
The U.S. Treasury building in Washington, D.C.
Photographer: Al Drago/BloombergThis article is for subscribers only.
The first fallout from rising U.S. Treasury yields has emerged, with a stronger dollar buffeting emerging-market currencies such as South Africa’s rand and the Brazilian real.
The rand and real have slumped about 2% since U.S. yields crossed the 1% mark on Wednesday while Indonesia’s rupiah dropped almost 1%. The Colombian peso and Malaysia’s ringgit were among the other casualties as Treasury 10-year yields climbed to 1.10%, the highest since March.