Back to fundamentals in emerging markets – Wells Fargo

The overall contagion risk of a crisis in Turkey is fairly limited

Looking unsteady: EM currencies with weak fundamentals could remain under pressure, says Erik Nelson


The plunge in the Turkish lira has focused investors on economic fundamentals in emerging market (EM) economies and made them more selective with exposures, Erik Nelson, a currency strategist at Wells Fargo, says.

Recent turmoil in Turkey has sent jitters and volatility across the EM universe, triggering concerns over contagion. The lira dropped nearly 40% against the dollar in the year to date, with most losses materialising in August.

Meanwhile, the currencies

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