Euro Becomes Collateral Damage as Trump Amps Up Turkey Pressure
- Common currency tumbles to lowest level since July 2017
- Concern mounts over European banking health: Credit Suisse
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As U.S. President Donald Trump takes aim at Turkey, the euro is getting caught in the crossfire.
Turkey’s lira plunged to a record low Friday amid escalating tension over the detention of an American pastor, with Trump ordering some tariffs on Turkish metals to be doubled. The carnage quickly spread from emerging to developed markets: The euro sank as much as 1.2 percent to the weakest in more than a year, extending a drop triggered earlier by a Financial Times report that the European Central Bank raised concern about European banks’ exposure to Turkey.