Turkey's ETF logs worst daily plunge in about 10 years as country's currency unravels

By On August 10, 2018

Turkey's ETF logs worst daily plunge in about 10 years as country's currency unravels

The largest exchange-traded fund to track Turkey's equity market plummeted on Friday after the European Central Bank raised questions about a possible contagion from Turkey's embattled currency, according to a report form the Financial Times. President Recep Tayyip Erdogan won reelection in a snap vote in June and his growing power in Ankara has unsettled investors because he threatens the independence of the country's central bank. The iShares MSCI Turkey ETF TUR, -14.53% closed down by about 14.5%, marking its worst day since Oct. 15, 2008, according to FactSet data. The ETF had been down by as much as 21% earlier Friday. The country-specific fund has extended a recent decline that has seen it drop 51% since the start of 2018. The Turkish lira TRYUSD, -13.6841% sank against the U.S. dollar, down by about 13%, after losing a fifth of its value against the dollar earlier in the session. The currency crisis has spilled over in to broader markets as President Donald Trump said in a tweet on Friday that he has authorized the doubling of existing steel and aluminum tariffs on imports from Turkey. The Dow Jones Industrial Average DJIA, -0.77% fell 0.8% on Friday, the S&P 500 SPX, -0.71% ended down by 0.7%, while The Nasdaq Composite Index COMP, -0.67% fell 0.7%.

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Source: Google News Turkey | Netizen 24 Turkey

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