Economics
Oil Jump Jolting Turkey Is Red Flag for Rest of Emerging Markets
- Turkish lira posted second weekly loss despite interventions
- Government borrowing costs surged as brent crude topped $100
A Turkish flag by the Bosphorus strait during the evening sunset in Istanbul, Turkey.
Photographer: Moe Zoyari/BloombergThis article is for subscribers only.
Markets in Turkey are flashing warning signs that inflationary pressures are building in the developing world as oil prices spike.
Despite spending billions of dollars to shield the currency from surging energy prices last week, the lira extended the fifth-biggest depreciation in emerging markets since Feb. 11. The yield on two-year government notes jumped more than 210 basis points in the five days through Friday, second only to local debt issued by Russia, which now faces sanctions from the U.S. and its allies.