Economics
Lira Looms Over Emerging Markets With Turkey White-Knuckle Ride
- Emerging currencies’ implied volatility rises most since 2015
- Spillover into EM will likely be temporary: Credit Agricole
A currency exchange store in the Grand Bazaar in Istanbul.
Photographer: Ismail Ferdous/BloombergThis article is for subscribers only.
There isn’t a story across emerging markets this week likely to grip traders quite like the nosedive in Turkey’s lira.
As the nation heads for a full-blown financial crisis, concern that its troubles will sour sentiment toward other developing nations is growing, sending a gauge of implied volatility for currencies up by the most since China devalued the yuan in 2015. An index tracking emerging-market currencies renewed a 2018 low on Monday after dropping the most in more than a year Friday.