A sell-off in emerging markets currencies deepened yesterday as political concerns exacerbated fears many countries will suffer a double blow of slowing growth in China and rising interest rates in the US.
The Brazilian real sank to its lowest level against the dollar since 2008 after polls showed President Dilma Rousseff – whose interventionist economic policies have unnerved investors – gaining on her opponents ahead of Sunday’s presidential poll.
Russia’s rouble, down 20 per cent since the start of the year, slid further, nearing the level that would trigger central bank intervention.
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