Morgan Stanley (via Ambrose Evans Pritchard): As the USD rises a big problem opens up

Morgan Stanley (via Ambrose Evans Pritchard): As the USD rises a big problem opens up. Debt ratios in developing Asia have surpassed extremes seen just before the East Asian financial crisis blew up in the late 1990s and companies have borrowed unprecedented sums in dollars (USD), leaving the region highly vulnerable to US monetary tightening. Morgan Stanley said foreign debt in emerging Asia has soared from $300bn to $2.5 trillion over the last decade, creating the risk of a currency shock as the dollar surges to a four-year high and threatens to smash through key technical resistance. (VIEW LINK)


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