Delta variant of Covid creates emerging market gap as outperformers hit

Countries that are lagging in vaccination rates may feel the pressure as they tighten restrictions that will hurt economic activity, according to Credit Agricole CIB

A handful of emerging-market currencies have held onto gains versus the dollar this year. That list may shrink in the coming weeks as the highly contagious delta variant forms a new fault line for developing nations.

Countries that are lagging in vaccination rates -- such as South Africa and Russia -- may feel the pressure as they tighten restrictions that will hurt economic activity, according to Credit Agricole CIB. Once the best performers of 2021, the rand and ruble were among those that knocked an index of emerging-market currencies lower in June for the first time in three months.

“Achievements in terms