The Turkish lira plunged as much as 12% against the yen, forcing Japanese investors to liquidate positions in one of their favorite emerging-market trades for the second time this year.
Much of the lira’s Monday sell-off happened about 7:20 a.m. in Tokyo, around when Japanese margin-trading firms typically start closing loss-making client positions. Net lira-yen longs held by margin accounts rose last week to the highest level since mid-June, according to data from the Tokyo Financial Exchange Inc.
