Every emerging market currency is down today
Here's Bloomberg's look at emerging markets. They're all down against the US dollar, with a few of them getting hit hard. I can't find any non-pegged currency anywhere that's up against the US dollar. Most of the majors are down 0.6-0.8% so emerging markets are basically in-line with that.
Still, it underscores the strength of the dollar.
The Turkish lira is in special focus today after a remarkable interview with Erdogan on Bloomberg. He was asked about interest rates and basically said the central bank was going to start taking orders from him. Moreover, he showed a tragic misunderstanding of how interest rates work.
He cited a bunch of countries that have high inflation and also have high interest rates and then said that high rates cause high inflation and that he's going to lower rates to lower inflation.
"First of all when you look at the cause and effect relationship, the interest rate is the cause and inflation is the result. The lower the interest rate is, the lower inflation will be," he said.
