July 1997: Asian Financial Crisis
The DXY spiked to 100 as the Fed held rates steady while Asia's export-driven economies overheated. Thailand, Indonesia, South Korea — all had borrowed heavily in ...
2018: Turkey and Argentina
The DXY climbed to 97 as the Fed raised rates through 2017 and 2018. Turkey's lira lost 30% of its value in a single month (August 2018). Argentina entered its ninth sovereign default in 2020, but the stress began here — currency crisis, inflation spiking to 40%, IMF intervention.
Both economies had binged on dollar debt during the post-2008 era of global QE and low rates.
The question now: The DXY is currently around 104. Which emerging markets borrowed heavily during the 2020-2021 zero-rate period? Where does this pattern show up next?
The DXY climbed to 97 as the Fed raised rates through 2017 and 2018. Turkey's lira lost 30% of its value in a single month (August 2018). Argentina entered its ninth sovereign default in 2020, but the stress began here — currency crisis, inflation spiking to 40%, IMF intervention.
Both economies had binged on dollar debt during the post-2008 era of global QE and low rates.
The question now: The DXY is currently around 104. Which emerging markets borrowed heavily during the 2020-2021 zero-rate period? Where does this pattern show up next?