Emerging Market Currencies Erase Year-to-Date Gains on Rising Dollar, MSCI Index Down 0.2% on July 1

According to Jin10, emerging market currencies erased all year-to-date gains on July 1 as markets anticipate higher U.S. interest rates and a stronger dollar. The MSCI Emerging Market Currency Index fell 0.2% and is now nearly flat year-to-date, approaching its lowest closing level since April 7. Concerns over a hawkish shift by the Federal Reserve are driving widespread declines in developing-nation currencies.

In emerging markets, Asian currencies led the selloff. The South Korean won fell to its lowest level since 2009 after foreign investors sold 1.46 trillion won (approximately $938 million) of stocks.