Emerging Markets Report: Turkey’s lira is tumbling amid renewed fears of an emerging-market selloff

Turkey’s lira was one of the worst performers against the U.S. dollar in Friday trading — as the greenback rallied more than 5% against it — on track for its worst daily percentage drop since August.

So what happened?

Well, Turkey’s story hasn’t been rosy for a while, and the chickens might be coming home to roost. Earlier this month, gross domestic product data showed that Turkey entered a technical recession in the fourth quarter of 2018. That development comes on the coattails of last summer’s currency crisis, which saw the lira trapped in a downward spiral as consumer prices skyrocket.

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