US Interest Rates Will Continue to Rise
28 August 2013
Emerging markets have been melting in the summer heat. This week, with the Indian rupee and Turkish lira hitting record lows against the U.S. dollar, the focal point is expected U.S. military action in Syria.
Higher energy import bills widen current-account deficits menacing several emerging markets. Meanwhile, the threat of war encourages foreign investors to withdraw to safe harbors, draining away the portfolio flows required to plug the gap.