Emerging currencies Plunge on Growth Concern

Emerging currencies plunged against the US dollar after the international Monetary Fund cut its 2016 global growth forecast on Tuesday.

The IMF, cut this year global outlook from 3.2 percent in April to 3.1 percent, citing Brexit effect and global uncertainty.

The South Korea’s won led declines in Asia, dropping 0.7 percent to 1,143.05 a dollar as of 9:35 a.m. in Seoul. The Turkish lira also plummeted toward a record low as the fallout from the failed coup deepened.

Meanwhile, China’s yuan gained after the People’s Bank of China strengthened its daily reference rate.

“There’s a little move away from high-yielders into a more conservative basket,” said Stephen Innes, a senior trader at Oanda Asia Pacific Pte Ltd. in Singapore. “Overall, it’s a soft spot in regional risk appetite. Crude prices have continued to weigh negatively.”

The gauge of emerging currencies dropped 0.1 percent as of 11:15 a.m. in Hong Kong. While Malaysian Ringgit fell 0.4 percent and the Philippines Peso slid 0.3 percent.