Emerging-Market Rally Unravels as Investors Shun Risk on Iran

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000An electronic screen showing the Kospi index at the Korea Exchange in Seoul, on March 3.The selloff in emerging markets deepened on Tuesday, with gauges of stocks and currencies posting the worst drops in years as the war in Iran forces investors to adjust to the risks of resurgent inflation and reprice bets on interest-rate cuts.The Korean won sank as markets reopened after a local holiday, touching lowest since 2009 against the greenback, which rallied more than 1.2% before trimming the advance. Currencies in Chile and Hungary, countries which are highly dependent on energy imports, sank more than 2.5% each as oil surged.