>> Turkey's currency took a dive again Monday, plunging as much as 11% against the US dollar. The sharp fall sparking a sell off in other emerging market currencies, and fueling fears of broader market turmoil. Reuters correspondent Tommy Wilkes.>> Turkey is not a huge economy in the world.
But emerging markets in previous crises have often been quite correlated. There's been contagion, people have pulled money out of one market and out of others at the same time. So there's worries that that contagion is spreading. So we've seen big falls in the South African rand, in the Mexican peso, in the Indian rupee, and several other emerging market currencies.
So there's worries that investors, after putting lots of money into emerging markets in recent years, will pull out of them, all of them, at the same time.>> For now, investors are fleeing to the safety of developed markets, giving currencies like the dollar a boost.>> Well, what we saw on Friday, when the lira was plummeting, is Donald Trump tweet proclaiming the strength of the dollar and the weakness of the lira, and then announcing new sanctions on some Turkish exports.
What that really says is that Trump wants to play hardball. He wants to impose sanctions on countries which are facing severe market and economic difficulties. We don't know yet whether that sort of strategy is gonna work. But it sends a message to other countries that the US is gonna stand firm, that it's not gonna reach out and immediately help those countries whose currencies are falling.
>> Meanwhile, Asian markets were down across the board Monday, and Europe finished in the red.