Emerging currencies bruised after Fed signals US rates rise

London

EMERGING-MARKET currencies fell, extending their worst monthly decline since August, as mounting signs that the Federal Reserve will raise interest rates in June and July diminished the allure of higher-yielding assets.

Asian currencies led the retreat after Fed chief Janet Yellen said the strengthening US economy would probably warrant an increase in borrowing costs "in the coming months". The South African rand depreciated for a second day and a gauge of stocks in the Gulf Cooperation Council dropped to a three-month low as Brent crude slipped further below US$50 a barrel.