Emerging Currencies Drop as Iran Conflict Dims Risk Appetite

Emerging-market currencies weakened against the dollar on Monday as oil advanced and tensions in the Middle East escalated, with President Donald Trump and Iran’s leadership rejecting each other’s peace proposals and signaling no end in sight to the 10-week-old war.

The MSCI Emerging-Market Currency index retreated 0.1% on Monday, with currencies of oil-importing countries including India, Chile, South Korea and Thailand ranking among the biggest losers. The dollar gained 0.1%, while Brent futures advanced 2.9% to settle near $104 a barrel, the highest in almost a week.