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EM Currencies May See Futher Declines on Fed, Rising U.S. Bond Yields

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Emerging-market currencies may see further declines after the Federal Reserve signaled interest-rate hikes could be more aggressive than expected, eroding the allure of riskier assets.

MSCI Inc.’s gauge of developing currencies slipped 0.3%, its biggest drop in three weeks, after earlier dropping as much as 0.4%. The 10-year Treasury yield briefly topped 1.75%, approaching its 2021 high during early U.S. day trading.