Last week, the currencies of several developing countries plunged, hitting stock markets around the world. Is more trouble brewing? Matthew Partridge investigates.
Why the slump?
At the end of last week, several emerging-market currencies and stock markets slid sharply. Argentina saw the value of the peso plunge as its central bank – albeit briefly – gave up intervening in markets to defend the currency.
The Turkish lira slid amid political turmoil over a corruption scandal, forcing a drastic hike in interest rates by its central bank. China’s wobbly economic growth and more riots in Ukraine also unnerved investors [...]
Want to read this article now?
Already a MoneyWeek subscriber? Please log in below.
Not a subscriber? Sign-up now for a 4 week FREE trial to get instant access.