A panic attack in the developing world as emerging markets sell off

“The salad days for emerging markets are over,” says the Financial Times. Last week saw a bout of “near-panic” as investors once attracted by exotic growth stories fled back to traditionally less-risky assets in the developed world.

US government bond yields fell (so prices rose) and the Japanese yen strengthened, as a Bloomberg index of 29 emerging-markets currencies fell to its lowest level since April 2009.

The Argentinian peso fell 12% last Thursday alone to a record low against the US dollar. The Turkish lira also hit yet another record low against the greenback, while the South African rand [...]

MoneyWeek magazine

Latest issue:

Magazine cover
Hard cash

What's next for gold and silver?

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues
Shale gas 'fracking' promises to transform Britain's energy market. Find out what it is, what it means, and how to invest.

More from MoneyWeek

FREE REPORT:
What you should really do with your money (2014 Edition)


How to buy and sell penny shares

A beginner's guide to investing in gold

How to invest in British fracking