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Transcripts For DW Business - News 20221215

d. w is asia department. sorry. good to see. maybe you can explain to me why our interest rates hikes in the u. s. or even in europe, a source of concern for emerging economies like india. right, good. so here s what happens is when the u. s. fed hikes, it the interest rate, the difference between the interest rates in india and the interest rates in the us, it shrinks. now this matters a lot for foreign investors because usually emerging markets give better returns than developed markets. but when a developed market like the us or where they, the rates are either there and what happens in a developing market like india is that the developing market becomes less attractive for, for investors. so there is a capital outro, foreign mr. take their money. and well, from a markets like india and put them in us talks, which are relatively less quality. so the, but becomes a case of capital outflow. then the ruby also suffers its value, goes down. if the value dips significantly, the

Janice Kay Lucas

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