TABLE: TROUBLE SPOTS IN THE CURRENCY MARKET
Inflation is low, but investors are fleeing. To keep interest rates high and
preserve the peso's hard link to the dollar, President Menem may trigger a
To keep worries about massive deficits from triggering a currency rout, the
Bank of Canada will have to keep rates high.
The lira is sliding amid concerns over a $1.2 trillion national debt and
political chaos. Some think a debt default is possible.
High unemployment and rising budget deficits are weakening the franc's ties to
the German mark.
The peso continues to skid as investors turn thumbs-down to government's rescue
plan. Even $18 billion in international aid may not help.
Central bank is raising rates as political concerns push the peseta to a record
low against the German mark. More depreciation is likely.
DATA: BUSINESS WEEK