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Massive Argentine Peso Plunge Worsens Emerging-Market Selloff
The brutal tumble of Argentina’s peso added to the list of concerns over the ability of developing economies to defend their currencies as the era of cheap money wanes. Emerging-market assets extended losses a day after the Federal Reserve’s more hawkish signals. A measure of currencies in developing nations dropped to a seven-month low, while every group in the MSCI Emerging Markets Index fell -- led by industrial, commodity and technology companies. The Argentine peso sank more than 6 percent on reports of changes at the country’s central bank and after truck drivers began a strike. The Brazilian real -- ... (full story)