In a closed-door meeting at a Manhattan mansion, executives outlined changes to controversial software that was implicated in two crashes.Aerospace & Defenseread more
Current and former Tesla employees working in the company's open-air "tent" factory say they felt pressure to take shortcuts to hit aggressive Model 3 production goals,...Technologyread more
Minutes from the Reserve Bank of Australia's monetary policy meeting in July showed the central bank was ready to adjust interest rates if required.Asia Marketsread more
President Donald Trump and the RNC are picking up key supporters in the business community who did not back him as a candidate in 2016.2020 Electionsread more
Amazon workers in Minnesota and Germany are striking as Prime Day kicks off, in a stand against working conditions and wage practices. The action in Minnesota represents the...Retailread more
Treasury Secretary Steven Mnuchin is raising red flags ahead of Facebook's proposed cryptocurrency launch.Marketsread more
Epstein is accused of sexually exploiting dozens of underage girls from 2002 through 2005 at his New York and Florida residences. He is a former friend of Presidents Donald...Politicsread more
When you think of Prime Day, you might be thinking about deals on Instant Pots and Amazon Echo devices — not half-off dresses and designer heels. But the market for apparel...Retailread more
David Marcus, the head of Facebook's digital currency project, said the company expects Libra will drive more advertising revenue for the company.Technologyread more
Some White House officials expect the Cabinet secretary, who has known the president for years, to depart as soon as this summer.Politicsread more
"The important thing is that you shouldn't try to hit homeruns this week, because you're much more likely to end up striking out," Jim Cramer says.Mad Money with Jim Cramerread more
The Turkish central bank raised its overnight lending rate to 12 percent from 7.75 percent and the overnight borrowing rate to 8 percent from 3.5 percent late Tuesday, in a surprisingly strong move to defend the country's embattled currency.
The lira immediately strengthened to 2.2 to the dollar from 2.253 after the decision. The rate hike was much sharper than expected; eight economists polled by the Wall Street Journal had expected an increase of three percentage points at the most.
"The shock and awe of this move was important, we'll have to see now if it sticks," David McAlvany, CEO of McAlvany Financial Group, told CNBC Asia's "Squawk Box. "
(Read more: Turkey: What's going on and why you should care)
Emerging markets have come under renewed pressure in the past week, hurt by concerns about China's economy and the impact of a tapering of the U.S. Federal Reserve's monetary stimulus - especially on those countries with a high debt burden.
(Read more: Will the Fed throw emerging markets a bone?)
Local investors have been selling the lira in favor of foreign currencies, and international investors have been staying away from the Turkish currency, pushing its value down to record lows earlier this week.
The cost of Turkey's debt is also rising alarmingly quickly, with 10-year debt hitting 10.45 percent, its highest since 2010.
"The reason the lira was depreciating was because there was no confidence at all that the central bank would act appropriately," said Ed Ponsi, managing director at Barchetta Capital Management. "Tonight we have re-established trust in the central bank of Turkey."
Turkey is not the only emerging market to suffer in recent weeks, with Argentina and Ukraine both punished for political turmoil and large current account deficits.
Yet it is a substantially bigger economy than either of these, and World Bank projections suggest it should rise from the 17th biggest economy in the world in 2012 to the 14th in 2050. Its borders with Europe, Syria and Iran are another reason it is strategically important that a stable government and economy are in place.
The activity in Turkey came as Federal Reserve officials gathered in Washington, where they are expected to cut another $10 billion from the Fed's monthly bond buying program Wednesday.
The Fed started tapering the original $85 billion program at its December meeting. The Fed's tapering program has been seen as a drag on emerging markets, following years of extra funds flowing around global markets.
(Read more: Fed taper will remain slow and steady: CNBC survey)
Analysts said the decision by Turkey's central bank was significant since it had come across as reluctant to take action.
"It's only fitting that Turkey's central bank, which has stubbornly refused to mount a proper interest rate defense of the lira, decided to hike rates in an extremely aggressive manner in the dark of night," said Nicholas Spiro, managing director at Spiro Sovereign Strategy in a note.
"The decision to raise all three main policy rates by between 425 and 550 basis points is the most significant shift in monetary policy in a vulnerable emerging market since the U.S. Federal Reserve let the "tapering" genie out of the bottle last May," he added.
Central banks in some emerging markets have started to take action to defend their markets. India, hit hard last year when Fed tapering fears first surfaced, on Tuesday delivered a surprise interest rate hike to fight inflation.
—Reporting by Catherine Boyle and Dhara Ranasinghe