Sharp declines in the Turkish lira, Indian rupee and other currencies have raised the prospect of a self-reinforcing flight from riskier emerging markets.
While the lira recovered slightly on Tuesday, and so did many peers, India’s currency tumbled past 70 per dollar, a historic low. Across the world, the Argentine peso fell another 2.1%, even after an emergency increase in interest rates to 45% from 40%.
The...