The South African rand lost more than 10 percent today, recovering slighty to 14.51 to the dollar, while the Indian rupee hit an all-time low of 69.62 to the dollar before recovering to 69.695 right after the Turkish Central Bank said it would provide liquidity. It still lost nearly 10 per cent on Monday alone and has shed more than two-fifths of its value so far in 2018.
Erdogan's comments on interest rates - and his recent appointment of his son-in-law as finance minister - have heightened perceptions that the central bank is not independent.
Also caught up in the sell-off is Russia's ruble, which today hit its lowest level against the USA dollar since April 2016 and its lowest level against the euro since April this year, partly reflecting the high amount of borrowing in foreign currencies by Russian corporates, but also concern about the damage that the latest round of United States sanctions against Moscow - imposed in the wake of the Salisbury poisonings - will do to the country's economy.
Some would like to see Turkey's central bank increase interest rates. "I'm not there yet and I don't think the market is there". The Argentina Peso and Russian Ruble were also amongst the biggest decliners in Emerging Market currencies. After plunging to record lows yesterday, the currency clawed back as much as 9.1 per cent, although it slipped again after Mr Erdogan's remarks on consumer goods.
Dollar-denominated bonds issued by selected Turkish banks continued to fall on Tuesday, although sovereign bonds steadied.
It was, however, Chemring Group which fell the most among small caps, down 16.1 percent, after an explosion at a military hardware factory near Salisbury left one person dead on Friday. The Standard & Poor's 500 index lost 0.4 per cent to 2,821.93.
Moves elsewhere were mixed. BBVA is the most exposed, followed by UCG, ING, BNPP and HSBC, whose share price was down 0.8 per cent in afternoon trading. Ten-year Treasury yields held at 2.88 per cent. Its drop of as much as 18 percent on Friday hit US and European stocks as investors fretted about banks' exposure to Turkey.
Turkish Lira Plummets; Erdogan Pledges Economic War
The lira has been under sustained pressure on foreign exchanges, dropping by nearly 50% against the dollar in the past 12 months. Turkey is now under a 25 percent tariff on imported steel and 10 percent on aluminum, which went into effect in March.
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Costello had two daughters from a previous relationship, but McLean said he was also a role model for her own two children. Outside the scene, New Brunswick Premier Brian Gallant urged the public to be patient in waiting for answers.
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"The decline in the lira is multifaceted, caused not only by a weak external position in terms of current account deficit and inadequate currency reserves, but also the challenging political environment which exacerbates the vulnerabilities in the lira", Kerry Craig, global market strategist at J.P. Morgan Asset Management, wrote, as quoted by CNBC.
What's happening to Turkey's currency?
Sherwood cited the NAFTA negotiations as a key risk for Mexico and upcoming elections in Brazil and India as potential threats for those two markets. Emerging market currencies and equities have also fallen in value since Friday, while investments seen as safe havens, such as the US dollar, Treasury bonds, gold and the Japanese yen have strengthened.
CURRENCY: The dollar gained to 111.08 yen from Monday's 110.73 yen.
Fears over US sanctions and tariffs on Turkey have had a global ripple effect, sending the Russian ruble, the Argentinian peso and the South African rand down along with it.
Oil prices fell, with Brent crude off 25 cents at $72.56 a barrel and US crude 21 cents lower at $67.43. Holdings of the largest gold-backed exchange-traded fund, New York's SPDR Gold Trust GLD, have dropped about 10 percent from their April peak and are at their lowest since February 2016.