Emerging Currencies Weaken as Iran Conflict Dims Risk Appetite

Most emerging-market currencies fell against the dollar as oil traded above $105 a barrel and tensions in the Middle East escalated, with President Donald Trump and Iran’s leadership rejecting each other’s peace proposals and signaling no end in sight to the 10-week-old war.

The MSCI Emerging-Market Currency index retreated 0.1% on Monday, with currencies of oil-importing countries including India, Chile, South Korea and Thailand ranking among the biggest losers. The dollar gained 0.1%, while Brent crude rose more than 4% to trade above $105 per barrel.