Turkey may not be the only country facing a currency crisis, says investor Mark Mobius | The Indian NationTurkey may not be the only country facing a currency crisis given the prospects of higher interest rates in the U.S., prominent emerging markets investor Mark Mobius said Tuesday.

“Yeah, course it can,” Mobius told CNBC’s “Closing Bell” in response to a question on whether the sharp depreciation seen in the Turkish currency — the lira — could spread to other countries.

“With higher interest rates in the U.S., all these other countries that have debt in dollars will be hit,” said the investor, who’s the founding partner of investment firm Mobius Capital Partners.

The Turkish lira crashed to a record low Tuesday as the country’s President Recep Tayyip Erdogan defended his central bank’s continued contentious interest rate cuts amid rising double-digit inflation.

Mobius did not specify which other countries are vulnerable to a currency crisis. But he said the good news is that since the 1997 Asian financial crisis, many emerging markets have borrowed more in their local currencies.

read more…