NEW YORK/LONDON – A plunge in the Turkish lira rocked global equities and emerging markets on Friday and fear of further fallout sent investors scurrying for safety in assets like the yen and U.S. government bonds.
European shares and a gauge of global equity markets closed down more than 1 percent, while losses on Wall Street fell nearly as much. Germany’s DAX index slid 2 percent.
The lira fell as much as 18 percent against the dollar in its worst day since Turkey’s financial crisis of 2001. The plunge followed a deepening rift with the United States, worries about its own economy and lack of action from policymakers.