We’re still concerned about the structural integrity of emerging market currencies, many of which have fallen again after rebounding slightly in recent weeks. Turkey led the way again. The lira fell 2.3 percent on the dollar on Thursday. Turkish President Recep Tayyip Erdogan eliminated a 10 percent withholding tax on lira deposits of up to one year to stem the lira’s latest fall, and though this appears to have worked, leading to a 1.2 percent rebound on Friday, it is only a temporary solution. The lira is down 8.2 percent on the week overall. Argentina’s peso is also struggling, dropping 13 percent on the dollar on Thursday and necessitating Argentina’s fifth interest rate hike since April. The government announced that a new raft of measures would be revealed on Monday to stem the peso’s decline and curb inflation. The Chilean peso and Brazilian real were also down on the dollar on Thursday – 1.8 percent and 1 percent, respectively. Brazil announced it would be interveni
Daily Memo: China Prepares for More Tariffs, Currencies Slide
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