The scope of worry for emerging market (EM) investors just got wider, as Colombia and Peru become the latest entrants to the pool of troublesome markets.
Colombia was ranked the emerging market most vulnerable to higher U.S. interest rates , fresh data from BNP Paribas has shown, followed by Turkey and Peru. The South American countries eclipsed more traditional threats to an EM investor's portfolio such as Brazil and South Africa.
The Federal Reserve could fire its first interest rate hike in nearly a decade later this year, according to widespread estimates. The first mention of a rate hike back in 2013 triggered 20 percent currency declines for emerging heavyweights like India and Indonesia, so investors are racing to position their portfolios properly this time around.