Emerging-market currencies slid on Wednesday, dragged lower by a stronger dollar as traders parsed mixed signals from Federal Reserve officials over the path ahead for interest rates.
The MSCI index tracking emerging-market currencies declined 0.2%, with the Hungarian forint, the Czech koruna, the Brazilian real and the Polish zloty all falling at least 0.8%. The Bloomberg dollar index gained 0.6%, while Treasury yields climbed after San Francisco Fed President Mary Daly said Wednesday that further rate cuts are likely needed, but the US central bank should approach those with caution.