Threat of Turkish contagion weighs on emerging markets

Turkey's deepening currency crisis is putting pressure on emerging markets, with Asian stock markets falling on Monday.

Glenn Freeman 14 August, 2018 | 5:00PM
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The deepening currency crisis is putting pressure on emerging markets amid growing fears of a banking crisis, with mixed views on the potential for contagion.

Asian markets slipped and the euro has hit one-year lows as a fresh fall in the Turkish lira fuels demand for safe havens, including the U.S. dollar, Swiss franc and yen.

The Turkish currency has fallen more than 40% this year on worries over President Erdogan's increasing control over the economy and deteriorating relations with the United States, which last week doubled tariffs on steel and aluminium imports.

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Glenn Freeman

Glenn Freeman  Glenn Freeman is a senior editor for Morningstar.com.au.

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