Emerging Markets Pummeled: Currencies at New Lows as Dollar Surges on Fed Bets and Geopolitical Tensions

• Emerging market currencies fell to new 2024 lows as dollar extends gains amid geopolitical tensions and bets on delayed Fed rate cuts

• China weakened yuan reference rate, ramping up pressure on Asian currencies like the rupiah, rupee and won

• Stronger US economic data increased uncertainty about Fed rate cuts, prolonging battle against dollar strength

• Geopolitical tensions between Iran and Israel added to safe-haven dollar buying

• Asian stocks extended losses with a benchmark of emerging market equities down 2% on dollar strength and risk aversion