The Turkish central bank’s repeated failure to catch up with inflation has left the country’s assets at the bottom of the emerging-market pile.
Resurgent consumer prices have revived a selloff in the lira, just when the currency was defying weakness among developing-nation peers in the wake of U.S. Treasury yields hitting the 3 percent mark. The losses are spilling over to bonds and equities, ruining the carry trade, and earning the markets some unsavory superlatives.
