As equity markets around the world try valiantly to hold on to yesterday’s manufactured gains that ‘proved’ the Taper is a good thing, few have commented on the consequences that are already being felt. Emerging Market currencies were broadly pummeled overnight with Indonesia’s Rupiah tumbling to 5 years lows and the Turkish Lira collapsing 1.9% in the last 2 days (its biggest drop in 4 months) to an all-time low.
- *LIRA AT LOWEST VS USD ON CLOSING BASIS SINCE AT LEAST 1981
- *TURKEY CENTRAL BANK TO SELL MINIMUM $50M FOR LIRAS TOMORROW
The Istanbul stock exchange is down 7.3% in the last 3 days (biggest drop in 6 months).
EM FX markets are not happy about the taper…
With the Lira breaking to a new record low against the USD (and EUR).
- *LIRA AT LOWEST VS USD ON CLOSING BASIS SINCE AT LEAST 1981
- *TURKEY CENTRAL BANK TO SELL MINIMUM $50M FOR LIRAS TOMORROW
So when does the Turkish central bank run out of USD?
with the Turkish stock index down over 7% in the last 3 days…
Charts: Bloomberg
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/fYk27-esHac/story01.htm Tyler Durden