Dollar, Oil Surge Hurt Emerging Importers, Stocks Dip

A strong dollar and a surge in global oil prices above $85 a barrel sent emerging market currencies broadly lower on Tuesday, while Hong Kong led a fall in stocks over worries about a slowdown in Chinese manufacturing. Oil prices rose almost 3% on Monday to hit a four-year high, raising the prospect of higher inflation and more pressure on growth in countries which have to buy in their fuel supplies. Manufacturing activity in countries from China to Russia this week has also turned investors’ minds back to the issues of growth and capital outflows that drove a sell-off in several major emerging markets earlier this year.