Dec
13

Dollar Disruptions

emerging-markets As the Fed begins to raise interest rates, it affects all nations but especially emerging markets. Rising rates, and thus improved US returns, vacuum up money from developing nations, causing their currencies to decline. This forces those nations to consider raising interest rates to reduce inflation and protect their weakening currencies. Nations currently most affected by this phenomenon are Brazil, Malaysia, Mexico, South Africa and Turkey. All great vacation spots!

 

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