Emerging Market Currencies Drop to 2024 Low After Iran’s Attack on Israel

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(Bloomberg) -- Emerging-market currencies fell to a new low for the year as the dollar extended gains into a fifth day amid heightened geopolitical tensions ...

-- Emerging-market currencies fell to a new low for the year as the dollar extended gains into a fifth day amid heightened geopolitical tensions and after robust US data boosted bets the Federal Reserve will delay interest-rate cuts.Iran’s Attack on Israel Sparks Race to Avert a Full-Blown WarThe MSCI EM Currency Index dropped 0.2% on Tuesday to the lowest since December.

Meanwhile, any weakening in China’s managed currency can have an outsized impact as it is seen as an anchor for its regional peers. Most under threat are the currencies of Asian neighbors such as South Korea and Thailand, where China is the number one trading partner but a suddenly weaker yuan may have a much wider effect.

The energy sector is ripe for fresh gains due to attractive valuations, investor positioning, and structural tailwinds, David Rosenberg said.

 

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