Emerging-market currencies are tumbling as the twin threats of rising US interest rates and a global recession send traders scurrying to the safety of the dollar.
The MSCI Emerging Markets Currency Index dropped for a second day on Wednesday, extending this year’s slide to 4.5%, the biggest for such period ever. Losses in the developing world were led by the Russian ruble, which fell for a fourth day amid talks about foreign-exchange intervention. Andean currencies also weakened, with the Colombian peso dropping to a fresh record against the dollar. The Philippine peso led declines in Asian trade, sliding to the lowest level in 17 years, while the South Korean won tumbled to the weakest since 2009.