Wednesday, September 27, 2023
Homethe worlds biggest risksEmerging-market currency 'contagion' spreads

Emerging-market currency ‘contagion’ spreads

Emerging-market currencies continued to take a beating on Friday amid growing worries about political upheaval, slowing growth and U.S. monetary policy, prompting central bankers and policymakers to scramble for a response.

Turkey's lira hit a new record low against the dollar, and Argentina's peso was down almost 20 percent on the week against the dollar.

Argentina's government responded by loosening strict foreign exchange controls, and the country's economy minister said Friday that the government would not permit any more devaluation. Earlier this week, Argentina's central bank abandoned its policy of intervening in the foreign exchange market, which pushed the currency lower.

The fell to a two-month low against the dollar, and traders said the central bank had intervened in the currency markets, according to Reuters.


Most Popular