Emerging Market Rally Unravels as Investors Shun Risk on Iran
An electronic screen showing the Kospi index at the Korea Exchange in Seoul, on March 3.
Photographer: Jung Yeon-je/AFP/Getty ImagesThe selloff in emerging markets deepened on Tuesday, with the currency gauge posting its worst session since 2023 and stocks falling the most since April, as the war in Iran forces investors to adjust to the risks of resurgent inflation and reprice bets on interest-rate cuts.
MSCI Inc.’s benchmark for EM currencies closed the day 0.8% lower, the largest drop since 2023, after falling as much as 1.6%. It is coming off record highs set last week.