A currency crisis has hit many developing economies. It started when the US showed signs of making an economic recovery. That led to investors taking their money out of the emerging world and putting it back into the United States.
Investors, chasing better returns in US dollars, have forced the two countries' currencies into free fall. The big question is whether the rout can threaten financial markets and the global economy medium-term.
The US Federal Reserve has raised its key lending rate by another quarter-point — the second time in 2018, and aimed at staying ahead of growing inflation amid strong growth and robust employment.
The World Bank's forecast marks a slight slowdown to last year's projected growth figures for the eurozone. The US and commodity-exporting nations are expected to reap the most benefits in 2017.
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