Delta Variant Creates Emerging Markets Gap as Outperformers Hit
- Currencies of countries lagging in vaccinations under pressure
- Russian ruble, South African rand seen curbing early 2021 gain
Photographer: Ozan Kose/AFP/Getty Images
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A handful of emerging-market currencies have held onto gains versus the dollar this year. That list may shrink in the coming weeks as the highly contagious delta variant forms a new fault line for developing nations.
Countries that are lagging behind in vaccination rates -- such as South Africa and Russia -- may feel the pressure as they tighten restrictions that will hurt economic activity, according to Credit Agricole CIB. Once the best performers of 2021, the rand and ruble were among those that knocked an index of emerging-market currencies lower into the end June for the first monthly drop in three. The ruble fell 1.4% last week, while the rand dropped 0.7% amid rising infections.