Record run in emerging-market currencies is now stirring worry

Meanwhile, implied volatility in developing currencies is rising for the first time in two weeks, according to a JPMorgan Chase & Co. gauge, raising hedging costs and denting the appeal of higher-yiel

After a 13% advance from post-pandemic lows to a record high, the rally in emerging-market currencies now looks to be fizzling out.

Gains in the South African rand, this year’s best performer, have stalled. Options traders are adding to bearish wagers on the Russian ruble despite hawkish comments last week from the central bank chief. The Chilean peso suffered its biggest drop in three weeks on Tuesday as a rout in copper prices dims the outlook of the country’s terms of trade.

Meanwhile, implied volatility in developing currencies is rising for the first time in two weeks, according to a JPMorgan Chase