Economics
Surging U.S. Dollar Is Next Big Headache for World Economy
- Emerging markets are suffering record capital outflows
- Strong dollar comes as EM central banks slash interest rates
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King Dollar is creating a new headache for virus-battered economies globally, with emerging markets especially vulnerable as they try to cope with collapsing currencies and plunging demand.
Investors are fleeing emerging markets in record numbers and piling into the safe-haven greenback, with two emergency interest-rate cuts this month by the Federal Reserve doing nothing to diminish the dollar’s appeal.