Turkish lira crisis: Erdoğan says 'attacks will continue' against the economy – live updates

All the day’s economic and financial news, as Turkey’s lira crisis hits shares and currencies around the globeLatest: President Erdoğan hits out at USErdoğan: lira will stabilise soon (after it hits record low)Introduction: Turkish financial crisis is deepeningMarkets fall in Asia, euro hits one-year lowTurkish central bank is boosting liquidity….Q&A: Why is the Turkish lira in freefall and should we worry? 3.07pm BST After several hours of volatile trading, the Turkish lira has settled around 6.87 lira to the US dollar.That’s a loss of around 7% today (a whopping move by usual standards), but also a small recovery on the record low of 7.2 struck overnight.The vibrant growth of Turkey relied heavily on financing in foreign-currency debt. While Turkish exports get cheaper, Turkish companies face higher repayment obligations of the loans which hurts banks as well.As the Lira has a reputation as a weak currency, Erdogan’s rhetoric puts oil into the fire. With a further weakening of the Lira, Turkey faces a downward spiral, where default could be the end.#5things-Lira rout continues-Risk spreads beyond Turkey-Saudis eye Tesla investment-Markets drop-Quiet data weekhttps://t.co/pPysasxnbC pic.twitter.com/64y2cvGWCy 2.49pm BST The Turkish crisis dragged world stock markets to a one-month low today.The MSCI world equity index, which tracks shares in 47 countries, fell 0.6% this morning, as the Turkish lira hit fresh record lows against the US dollar.In Japan, the Nikkei tumbled -2% to a five-week low overnight as a sell-off in emerging market currencies frightened investors, with the safe-haven yen’s (¥110.20) appreciation also hurting sentiment. The broader Topix dropped -2.1%.Down-under, Aussie shares ended lower overnight, weighed down by materials and banks after the crisis in Turkey hit Asian assets, while global trade turmoil pushed commodity prices lower. The S&P/ASX 200 index fell -0.4%. In S. Korea, the Kospi ended down -1.5%, in line with other Asian countries.U.S. stocks open slightly higher https://t.co/l8P6rc8Aep pic.twitter.com/c8pc9aCwL0 Continue reading…
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