Bernanke Denies India to Mexico Rate Cuts as Currencies Sink

Traders who anticipated lower interest rates in developing nations are reversing course as prospects for reduced Federal Reserve economic stimulus sparks the worst rout in emerging-market currencies since 2001.

Just a month ago, central bankers in Mexico, India and South Korea were expected to pare borrowing costs at least once, according to interest-rate swaps data compiled by HSBC Holdings Plc. Now, the measures show no chance of cuts. Poland’s central bank said today that it has ended an easing cycle after lowering the benchmark rate to a record low 2.5 percent. Traders anticipate one more reduction in Hungary, instead of the two they expected a month ago.