An index tracking emerging-market currencies closed for its worst session since November 2024 as the dollar jumped and traders dumped risk assets amid risks of a prolonged military conflict in the Middle East.
An MSCI total return gauge of developing nation currencies fell 0.5%, trimming earlier losses, while the US dollar and gold rose as investors piled into haven assets. Central banks in Indonesia, Turkey and India had to intervene in foreign-exchange markets to keep their currencies from sliding. Traders curbed bets on interest rate cuts in eastern Europe due to a spike in oil and natural gas prices.
