Emerging-market currencies have given back their year-to-date gains as traders
price a higher US rate path and a firmer dollar. The MSCI EM currency index fell
0.2%, leaving it roughly flat YTD and tracking toward its lowest close since
April 7. Markets are increasingly pricing a hawkish shift at the Fed; a Fed
official is scheduled to speak later today at the ECB Sintra forum alongside
European and UK peers. Asian currencies led declines: the won fell to its
weakest since 2009 after foreign investors sold a net 1.46 trillion won (~$938m)
of Korean equities.
