Investors: Turkish Assets and Interest Rates

investors: Rising interest rates in the United States and in Europe have made investors less tolerant of emerging markets, according to The Toronto Star. Foreign investors piled money into Turkish assets for years, lured by what appeared to be a stable economy and higher returns. The crisis, caused by soaring inflation, economic mismanagement by the Turkish government and tensions with the United States, has raised concerns over whether emerging economies that have benefited in recent years from foreign investment may also be vulnerable. But as interest rates rise in countries seen as safer, the relative attractiveness of riskier investments wanes. Turkey's central bank insisted over the weekend that it would take all necessary measures to preserve the country's financial stability. A crisis like the one in Turkey may be all it takes to send them fleeing. (news.financializer.com). As reported in the news.