LONDON (Reuters) - MSCI’s emerging market currency index wiped out all of its 2019 gains on Monday as a re-escalation of U.S.-China trade tensions rattled global markets.
The index of 25 currencies which is heavily skewed towards Asian currencies such as South Korea’s won, Taiwan’s dollar and China’s yuan, fell 0.7 percent on the day which was set to be its biggest drop since October.
A number of big asset managers such as JPMorgan and UBS have in recent days reduced their exposure to emerging market assets, while Citi said it had recorded outflows among its clients on emerging market FX for a third straight week.
The MSCI EM FX index is on track for a fourth straight month of losses after gaining 2.6 percent in January.
Reporting by Karin Strohecker; editing by Marc Jones