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Wall Street Journal / Biz - Money

Emerging-Market Currencies Fall Against Dollar

A range of emerging market currencies fell against the dollar, pressured by worries yields in the U.S. will continue rising.

Emerging market currencies fell against the dollar Thursday.

A range of emerging-market currencies fell against the dollar, pressured by worries that bond yields in the U.S. will continue rising.

Late Thursday in New York, the dollar rose 0.6% against the Brazilian currency to 3.6965 reais, its highest level in more than two years. It rose 1.1% against the Turkish lira to hover near a fresh high, and notched gains against the South African rand, Russian ruble and other currencies.

The yield on the 10-year Treasury note settled at a multiyear high of 3.109%, from 3.093% Wednesday. Rising U.S. yields tend to diminish the attractiveness of emerging markets, where investors often assume higher risk in the hopes of richer returns.

Expectations of higher prices for oil, copper and other raw materials exported by many emerging markets have helped mitigate the dollar’s gains in recent days, analysts said.

The WSJ Dollar Index, which measures the currency against a basket of 16 others, rose 0.2%, to 87.02, its highest closing level this year. The U.S. currency gained 0.3% against the Japanese currency to ¥110.77, while the greenback advanced 0.1% versus the euro to $1.1794. The British pound rose 0.2% to $1.3516.

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