Investors fear Turkey is teetering on the edge of financial crisis following a dramatic plunge in its currency that continues to deepen. The lira now is down nearly 45% this year, rattling vulnerable emerging markets and bond yields have sky-rocketed. U.S. sanctions against top Turkish government officials and unorthodox economic policies by Turkey’s President Recep Tayyip Erdogan have spooked markets. A strengthening dollar and higher U.S. interest rates are making life difficult for the weakest emerging markets. Turkey is prime among them.

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