The Turkish lira and South Africa’s rand led declines among emerging-market currencies as the yield on 10-year Treasuries climbed to levels unseen since January. A gauge of developing-nation equities retreated for a fourth day amid speculation that the U.S. is headed for an era of rising interest rates and more protectionist trade policies.
“The higher U.S. bond yields are really weighing negatively on the emerging-market space,” said Stephen Innes, a senior trader at Oanda Asia Pacific Pte in Singapore. “From a capital preservation point of view, everybody’s looking to buy U.S. dollars.”
