# Turkish currency's freefall rocks world equity markets, euro

> The Turkish currency went into a freefall, rocking world equity markets and weighing on the euro. The Times reported that the European Central Bank was concerned about European lenders' exposure to Turkey, which is not an EU member but is economically linked to the bloc.

- Date: 2018-08-10 · published 2018-08-10T12:00:00.000Z
- Category: macro · region Turkey · magnitude medium
- Page: https://feedsoft.ai/events/11060-turkish-currency-s-freefall-rocks-world-equity-markets-euro
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md)

## Why it matters

Contagion fears from Turkish bank and currency exposure pushed investors toward the dollar and away from the euro, strengthening the dollar against euro-linked and emerging-market assets.

## Read by commodity

- DXY: bullish ▲
- EURUSD: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2018-08-10 | 1 | -1.4% | -3.3 | The lira freefall and the reported ECB concern over European lenders' Turkey exposure created contagion risk (sentiment) that weighed on the euro the same day. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2022-05-20 | [Dollar Vs. Euro: Eurozone's Falling Currency Risks Stoking Inflation - Markets Insider](https://feedsoft.ai/events/41615-dollar-vs-euro-eurozone-s-falling-currency-risks-stoking-inflation-markets.md) | -0.6% | +1.5% |
| DXY | 2018-05-28 | [Why are Turkey's and Argentina's currencies in free fall?](https://feedsoft.ai/events/65310-why-are-turkey-s-and-argentina-s-currencies-in-free-fall.md) | +0.2% | +1.5% |
| DXY | 2016-06-24 | [World stocks in freefall as UK votes for EU exit](https://feedsoft.ai/events/6954-world-stocks-in-freefall-as-uk-votes-for-eu-exit.md) | +1.7% | +2.5% |
| DXY | 2024-03-28 | [Currency Markets: A Decline in the Euro to Parity With the Dollar Beckons - Bloomberg](https://feedsoft.ai/events/31420-currency-markets-a-decline-in-the-euro-to-parity-with-the-dollar-beckons.md) | +0.0% | +1.6% |
| DXY | 2021-11-17 | [FOREX-Rate bets rule currency markets as dollar shines; euro, Aussie sag \| Business](https://feedsoft.ai/events/11955-forex-rate-bets-rule-currency-markets-as-dollar-shines-euro-aussie-sag-business.md) | +0.8% | +1.1% |
| EURUSD | 2022-05-20 | [Dollar Vs. Euro: Eurozone's Falling Currency Risks Stoking Inflation - Markets Insider](https://feedsoft.ai/events/41615-dollar-vs-euro-eurozone-s-falling-currency-risks-stoking-inflation-markets.md) | +1.3% | -1.1% |
| EURUSD | 2016-06-24 | [World stocks in freefall as UK votes for EU exit](https://feedsoft.ai/events/6954-world-stocks-in-freefall-as-uk-votes-for-eu-exit.md) | -3.0% | -3.6% |
| EURUSD | 2024-03-28 | [Currency Markets: A Decline in the Euro to Parity With the Dollar Beckons - Bloomberg](https://feedsoft.ai/events/31420-currency-markets-a-decline-in-the-euro-to-parity-with-the-dollar-beckons.md) | +0.1% | -1.2% |

## Sources

- reuters.com: https://www.reuters.com/article/us-global-markets/stocks-dive-euro-falls-as-turkey-turmoil-ripples-out-idUSKBN1KV03F/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.