EM Currencies Suffer Biggest Drop Since March as Iran Ceasefire Fears Hit South Korea
Updated
Updated · Bloomberg · May 12
EM Currencies Suffer Biggest Drop Since March as Iran Ceasefire Fears Hit South Korea
12 articles · Updated · Bloomberg · May 12
MSCI’s emerging-market currency index was headed for its biggest one-day loss since March, while EM stocks also fell as investors priced in a possible collapse of the U.S.-Iran ceasefire.
South Korea led the selloff: the won was the worst-performing EM currency, and a slump in local shares added to broader risk aversion across developing markets.
Oil-importing markets took the hardest hit, with South Africa’s rand and Indonesia’s rupiah underperforming as higher energy-price fears resurfaced; the rupiah fell to a record low against the dollar.
The latest losses extend a wider global retreat after Donald Trump said the ceasefire was effectively on "life support" and rejected Iran’s latest proposal, pushing crude above $100 a barrel.
Amidst war-driven oil price spikes, why do some analysts believe a major price drop is coming soon?
As Middle East conflict fuels inflation, can central banks fight rising prices without triggering a global recession?
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