The Turkish lira rebounded on Monday after the central bank called an emergency meeting, but Brazil’s real slumped to a five-month low on fears the selloff in emerging markets could spread, potentially derailing the global economic recovery.
Foreign exchange and equity markets in developing economies suffered a third straight session of bulk selling, although some key currencies, such as the Mexican peso, partly recovered.
After a stormy week during which Argentina’s peso posted its biggest one-day loss in 12 years, sparking worries of contagion across emerging markets, investors monitored developments in Argentina and other fragile developing economies, such as Turkey.
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