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Turkish crisis rattles foreign exchange markets

Lira has dropped as much as 18% during the week as international markets soured on Turkey’s capacity to repay foreign-currency debts

Turkish crisis rattles foreign exchange markets

The Turkish lira tumbled Friday, a shock that set off sharp falls in other emerging-market currencies, hit the euro and European banks, and pushed the dollar to a one-year high.

Investors have for months questioned Turkey’s financial health and ability to repay its foreign debts. Until Friday, those concerns had shaken only Turkey directly, but they have now spread into the wider market.

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