EM Currencies Dip as US Data Reignite Higher-for-Longer Bets

Emerging-market currencies sank to the lowest in almost three months after US retail sales data came in much stronger than expected and as Israel’s vow to respond to Iran’s attack keptgeopolitical tensions high.

Latin American currencies were among the worst performing in the developing world as the figures from the world’s largest economy cemented bets the Federal Reserve won’t rush to cut interest rates. WTI crude erased losses, following a brief reprieve amid easing tensions in the Middle East, as top Israeli military officials reasserted that their country has no choice but to respond to Iran’s attack.

“If ...