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EM Currencies May See Futher Declines on Fed, Rising U.S. Bond Yields
Emerging-market currencies may see further declines after the Federal Reserve signaled interest-rate hikes could be more aggressive than expected, eroding the allure of riskier assets. MSCI Inc.’s gauge of developing currencies slipped 0.3%, its biggest drop in three weeks, after earlier slumping as much as 0.4%. The 10-year Treasury yield briefly topped 1.75%, approaching its 2021 high during early U.S. day trading. Minutes from the Fed’s December meeting showed policy makers were considering tightening policy earlier than anticipated and weighing steps to shrink its balance sheet. Concerns about a resurgent ... (full story)