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Ambrose strong dollar lead to credit crunch

As the Fed’s broad dollar index pushes towards an all-time high of 130, the mechanical effects will expose the Achilles Heel of an international system that has never been more dollarized - and never been more sensitive to US interest rates since the end of the Bretton Woods era.
King dollar will tighten the noose on emerging market debtors with $3.5 trillion of liabilities in US currency. 
It will force banks in Europe - through complex hedging contracts - to curtail offshore lending to the Pacific Rim, Turkey, Russia, Brazil, and South Africa. 
It will lead to a credit crunch in the developing world.

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