Asian markets on Monday were sent reeling from the fallout of Turkey’s lira troubles, which saw the currency—which has declined by 50 percent over the past 12 months—hit a record low against the dollar following concerns over higher US import tariffs on Turkish steel and aluminum.
The lira slump is hitting global markets hard. The Indian rupee hit an all-time low of 69.62 to the US dollar and the Indonesian rupiah took the biggest tumble out of all the Asian currencies and hit its lowest point in three years.
In response, Bank Indonesia Deputy Governor Dody Budi Waluyo announced that the central bank was preparing intervention measures to stabilize the rupiah.
The effects of the troubles in Ankara also sent ripples through markets in Korea, China, Hong Kong and Japan. Hong Kong’s Hang Seng Index dropped 1.7 percent, while mainland Chinese stocks fell by more than 1 percent.
Korea’s Kospi dipped by 1.5 percent and closed at 2,248.45, its lowest point since May of 2017.
In Japan, the Nikkei plunged by 1.98 percent Monday and closed below 22,000 for the first time in a month, but the market has since led the way in the recovery. Other markets have been slower to rebound from Monday’s declines.