Emerging-market currencies are sinking around the world, from Asia to South America and the Middle East.?
These markets were already under pressure this week because of rising U.S. interest rates and a stronger dollar.
Then, Argentina’s peso tumbled to a record low, prompting an interest rate hike to 60%. And in Turkey a report that the central bank’s deputy governor was set to resign sank the lira.
Here’s what followed:
?? Indonesia’s rupiah slid to a two-decade low, spurring intervention from the central bank.
?? India’s rupee fell past an unprecedented 71 per U.S. dollar.
?? South Africa’s rand dropped to the lowest in two years.
This looks like contagion, according to our columnist Marcus Ashworth: “One emerging country’s problems have become other emerging countries’ problems, and it’s hard to see how to break the cycle.