Markets face new threat as US Federal Reserve ponders interest rate rise
The moment US central bank chief Janet Yellen presses the button will be a massive economic event. The prospect that higher interest rates in the world's largest economy could come this year has already sent the dollar surging against the pound and euro. It has also fuelled fears of a meltdown in countries that have borrowed heavily in the US currency.
Borrowing is inherently risky, all the more so when the interest rate can change at short notice. Higher costs for those that have borrowed in dollars could cripple companies in Brazil and Turkey that were enticed by cheap credit to fund a new factory or office building, or just to pay the wages.
Turkey would be a risk too far when there are safe havens such as the US starting to offer a return on safe investments
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