LONDON (Reuters) – A plunge in the Turkish lira rocked global equities and emerging markets on Friday, and fears of more turmoil sent investors scurrying for safety in assets like the yen and U.S. government bonds.
A vendor gets a five Euro bank note from a customer at the central market in Athens, Greece, July 8, 2015. REUTERS/Christian Hartmann/File Photo
The lira fell as much as 14 percent against the dollar, chalking up its worst day since Turkey’s financial crisis of 2001. It came on the back of a deepening rift with the United States, worries about its own economy and lack of action from policymakers.
The currency is now down more than 36 percent this year, and 17 percent this month alone, fanning worries about a full-blown economic crisis.
“It is hard to pinpoint the point of no return (for Turkey and the lira)” said Tilmann Kolb in the Chief Investment Office at UBS Wealth Management.
Bank shares across the continent fell and the euro slipped to its lowest…