Emerging Markets Join Global Selloff as Borrowing Costs Soar

Emerging-market assets tumbled Friday on renewed concern the conflict in the Middle East would push up inflation worldwide, forcing central banks to pursue higher interest rates and triggering a flight to the dollar.

The MSCI EM Currency index slipped 0.4%, with the Brazilian real, the Chilean peso and the South African rand falling at least 1.2% each. All but one currency weakened across the developing world as the dollar rose for the fifth consecutive day, putting the Bloomberg Dollar Spot Index on track for its biggest weekly advance since early March.