Economics

Emerging Markets Under Pressure to Boost Borrowing Costs

  • Treasury yields, stronger dollar, Fed outlook add to strains
  • Economists revising forecasts see rate increases more likely
Photographer: Christian Rodriguez/Bloomberg
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Emerging-market central banks are going on the defensive.

A surging dollar and the highest 10-year U.S. Treasury yields since 2011 are fueling bets that policy makers in key developing nations from India to Mexico will raise interest rates faster than economists previously anticipated.