Turkish currency's freefall rocks world equity markets, euro

Turkish Lira

A plunge in the Turkish lira rocked global equities and emerging markets on Friday and fear of further fallout sent investors scurrying for safety in assets like the yen and bonds.

European shares and a gauge of global equity markets closed down more than 1 percent, while Wall Street also fell, though not as much. Germany's DAX index slid 2 per cent.

The lira fell as much as 18 percent against the dollar in its worst day since Turkey's financial crisis of 2001. The plunge followed a deepening rift with the United States, worries about its own economy and lack of action from policymakers.

President Tayyip Erdogan told Turks to swap gold and dollars into lira as the currency tumbled after President Donald Trump doubled US tariffs on metals imports from Turkey.

Turkey later warned the US that sanctions and pressure would only serve to harm ties between the two NATO allies.