Turbulence Roils Emerging Markets In The Shadow Of A Strengthened U.S. Dollar

India's currency hit an all-time low Wednesday, not long after currencies in Turkey and Argentina slid to their own record lows. But one major reason why is not to be found in emerging markets at all.
A pile of Turkish lira and euro banknotes sit atop a table earlier this month. The currencies of Turkey and other emerging economies have been falling against the U.S. dollar, which has been boosted by rising interest rates. Source: Amir Makar

If you've checked any economic news lately, there's a decent chance you've heard a pretty scary word, and there's a decent chance you've heard it a lot: contagion.

To be clear, economists have not been discussing an epidemic the past few weeks — at least, not the kind that directly concerns physical health. They're talking about the economic health of emerging markets around the world. And the diagnosis doesn't look great.

Many of those countries' currencies have nosedived, but the blame isn't entirely local —

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