Emerging FX Sinks as Iran War Drags On, Oil Holds Over $100
Damage from airstrikes in Tehran, on April 20.
Photographer: Majid Saeedi/Getty Images
Most emerging-market currencies weakened on Wednesday as traders weighed US President Donald Trump’s truce extension against Iran’s attacks on ships passing through the Strait of Hormuz.
The MSCI index tracking developing world currencies fell 0.3%, posting its worst day in more than a week, before the end-of-day adjustment. Eastern European currencies led the decline, while the Chilean and Colombian pesos bucked the trend, jumping 0.6% each along with copper and oil prices. The index for stocks fell, snapping a two-day winning streak.