The South African rand weakened by more than 10% against the US Dollar in the early hours of Monday morning as concerns over Turkey's diplomatic spat with the US, and capital flight risk, sparked turmoil in markets.
As Asian foreign currency markets opened on Monday, the Turkish lira continued to plunge to all-time lows, negatively affecting the rand, which followed suit and fell to a low of R15.70 from opening at R14.06 — making it the deepest rand plunge against the dollar in two years.
Similar meltdowns were recorded in other emerging markets.
Traders backed away from the Mexican Peso as fears mount over emerging markets. The Mexican Peso weakened to a low of Mex$19.32, or about R14.44, to the US dollar.
The Russians were not spared from the sell-off in emerging market assets. The ruble slumped to a near two-and-a-half year low, also as a result of last week's surprise sanctions by the US.
Although the Brazilian markets are yet to open, massive sell-offs in the currency have been taking place prior to the start of trade in South America.
Although Asian countries do not have a meaningful exposure to the Turkish lira collapse, the Indian rupee also took a knock that saw it hitting an all-time low of 69.92 (about R14.49) against the dollar.
The mighty Yuan also fell against the US dollar. The Chinese currency slumped 51 basis points to ¥6.87 to the dollar (about R14.48).
It is premature to say just how long and how much the lira crisis will impact markets, Kim Doo-un, a Seoul-based economist at KB Securities told Reuters – especially markets with a thorny relationship with the Trump administration.
But volatility for the rest of the week is a pretty sure bet.
More on the Turkish meltdown and its impact:
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