The US dollar strengthens, causing emerging market currencies to give up their gains for the year

Golden Ten Data reported on July 1 that as market speculation about higher U.S. interest rates fueled a rebound in the U.S. dollar, emerging market currencies have erased all their gains for the year. The MSCI Emerging Markets Currency Index fell by 0.2%. The index is now virtually flat for the year and is heading toward its lowest closing level since April 7. There is mounting concern in the market that the Federal Reserve may take a more hawkish stance under Waller's leadership, triggering a recent widespread decline in the currencies of developing countries. Waller is expected to speak later today at the European Central Bank conference in Sintra, Portugal, alongside peers from Europe and the UK. Among emerging markets, Asian currencies led the declines. As foreign investors net sold 1.46 trillion Korean won (around $938 million) in stocks, the Korean won depreciated to its lowest level since 2009.