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How changes in US Fed rate affect global markets

Updated : February 21, 2019 02:38 PM IST

Since the currency of the US is considered to be the benchmark in the forex market, a rise in the Fed rate will push up the value of the greenback against the currencies of other countries.
When interest rates are low, emerging markets tend to borrow in the US dollar, which helps boost their economic growth.
How changes in US Fed rate affect global markets
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