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As election looms, Turkish lira feels more pain after Fed rate hike

MarketWatch
As election looms, Turkish lira feels more pain after Fed rate hike

Turkey’s lira weakened against developed-market rivals Wednesday, after the U.S. Federal Reserve raised interest rates and worries about Turkey’s political future ahead of the June 24 snap election took hold of financial markets. The Fed’s 25-basis-point interest-rate increase Wednesday sent U.S. Treasury yields higher in anticipation of further rate hikes, and spread pain across emerging markets that are reliant on U.S. funding. “Countries with large external financing needs, like Turkey, South Africa and Argentina, remain the most vulnerable to rising U.S. interest rates,” said Omer Esiner, chief market analyst at Commonwealth FX. Check out: Here’s why South Africa could become the next emerging-market