Emerging markets and banks are among the biggest casualties in the recent decline of the Turkish lira, but there will be some winners in the economic crisis as well.
Rising U.S. interest rates do two things: One is, it makes the dollar-denominated debt of these emerging market countries harder to service; and on top of that, it has the effect of people rushing to take advantage of U.S. rates, lifting the U.S. dollar and also making it that much more harder to repay U.S. dollar debt.