The Turkish lira has plummeted as much as 12% against the yen on Monday, making Japanese investors liquidate positions for the second time this year.
The lira was trading at 5.6860 against the dollar at 6.37am GMT, little change from Wednesday's close of 5.6840.
ISTANBUL: Turkey told banks to wait one day before settling some large foreign-currency purchases, the latest move to defend the lira as President Recep...
Two JPMorgan analysts that recommended selling the lira against the dollar had 'misguiding and manipulative' content that resulted in volatility in markets.
Leading the charge among currencies was the Turkish lira, one of last year’s biggest losers.
Prices have soared in Turkey over the last months as the lira came under pressure, stoking fears over the long-term economic health of the country.
Turkey's lira has fallen some 40% this year, hit by concerns about President Tayyip Erdogan's control over monetary policy and a diplomatic rift with the United States.
The vast majority of the recipients of the funds were Iranian citizens resident in the United States, according to a statement from Istanbul's chief prosecutor.
The banks borrow on international markets in hard currencies, hedging dollar liabilities with gold deposits rather than the volatile lira, even though their loan assets are denominated in lira.
The news provided some much-needed support, which was improved on later in the day with data showing US consumer price inflation slid in August, easing pressure on the Federal Reserve to tighten borrowing costs.
Investors nerves have been raw since US President Donald Trump said he was ready to impose tariffs on virtually all Chinese imports into the US, increasing chances that the trade row between US and China would hit global growth.
Kejatuhan ketara peso Argentina mengikuti lira Turki, sekali lagi mencetuskan kebimbangan mengenai risiko kesan penularan dalam kalangan mata wang ekonomi pesat membangun.
US President Donald Trump gave fresh impetus to trade worries at the weekend when he said there was no need to keep Canada in the North American Free Trade Agreement and warned Congress not to meddle with the trade talks.
A report that Donald Trump is planning to impose tariffs on a further US$200 billion of Chinese imports next week has increased trading floor fears, with most equity markets across the region also down.
Many emerging market currencies were also frail after Argentina's peso sank on Thursday despite the central bank's interest rate hike.
As investors dumped Turkish and Argentinian assets, countries with large current-account deficits such as Indonesia and India have also seen their currencies and bonds come under selling pressure.
The lira has lost just under a third in value against the dollar, as anxiety over the coherence of domestic economic policy coupled with sanctions announced by the US generate market panic.
Erdogan’s overtures to Europe suggest he’s prepared to mend ties strained by past diplomatic clashes in an attempt to weather the US pressure.
The nation’s banking regulator published new rules that have so far succeeded at lifting the lira off record lows.
The court in the western city of Izmir ruled that Brunson, who faces 35 years in jail over terror and espionage charges, will remain under house arrest.
Turkey’s woes coupled with a wider-than-expected current-account deficit in Indonesia, has sent the Jakarta Composite Index down more than 5% in the past two days.
Just when gains in consumer prices eased, the Turkish lira-led sell-off in emerging-market currencies has renewed an onslaught on the rupee, pushing it to a record low.
The Turkish lira has dropped more than 40% this year, making it the second worst global currency after Venezuela’s bolivar.
The dealer said an increase in oil prices would cushion any impact on the ringgit.
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