The yen and dollar gained against most emerging-market currencies as the Federal Reserve continued to trim monthly bond buying that has propped up global asset prices.
New Zealand’s dollar extended a decline versus the greenback as the central bank held interest rates steady after Governor Graeme Wheeler said in December he expected borrowing costs to rise in the first half of 2014. Developing-economy currencies fell earlier as South Africa’s central bank joined Turkey in raising its benchmark interest-rate in moves that failed to reassure investors. Russia’s ruble extended its slump to 13 days and Hungary’s forint weakened.
“From the point of view of emerging markets, the Fed has just said ‘hasta la vista, baby,’” Steven Englander, global head of Group of 10 foreign-exchange strategy at Citigroup Inc., wrote in an e-mail. “There is modest disappointment in” riskier currencies.
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