Advertisement Continue reading the main storyYet in reality, the Fed is the central banker to the world. When the Fed lifts rates, investors switch gears, yanking capital and selling off other currencies. Investors then stampeded out of emerging countries, sending currencies plunging in Brazil, India, Indonesia, South Africa and Turkey. “It’s a big thing.”Advertisement Continue reading the main storyMost economists assume the rate increases expected this year will play out far less dramatically. Many emerging countries have amassed larger reserves of dollars, giving them ammunition against a drop in their currencies.

Source: New York Times March 17, 2017 03:40 UTC