However, the currencies of both countries, along with those of other emerging markets such as Indonesia, India and Russian Federation, have all found themselves under pressure, reflecting how contagion can spread through markets in the most unexpected of ways.
The Nasdaq composite fell 19.40 points, or 0.2 per cent, to 7819.71.
Here is a look at some of the reasons behind the plunge and how it might affect the rest of the world. However the statement gave no clear promise of rate hikes, which is what most economists and analysts say is needed to ease the crisis. The number of traders net-long is 1.2% lower than yesterday and 5.9% lower from last week, while the number of traders net-short is 1.9% lower than yesterday and 2.4% higher from last week.
At first glance, this seems like a problem peculiar to Turkey, as the country's economy has weakened.
Poland, more than half of whose government, household and corporate debt is denominated in foreign currencies, has seen the zloty fall by nearly as much since the beginning of August. To do that, they have to sell lira - worsening the rout. The lira's fall has been made worse by President Recep Tayyip Erdogan's statements on economic policy.
The lira recovered to 6.61 following the Central Bank's announcement. That drained investor confidence in the central bank, leading to a further sell-off of the currency.
While Dr. Liel noted that the "US is in every way much stronger than Turkey", he nevertheless suggests that President Trump may, somewhat paradoxically, be more constrained than his counterpart.
Also caught up in the sell-off is Russia's ruble, which today hit its lowest level against the U.S. dollar since April 2016 and its lowest level against the euro since April this year, partly reflecting the high amount of borrowing in foreign currencies by Russian corporates, but also concern about the damage that the latest round of U.S. sanctions against Moscow - imposed in the wake of the Salisbury poisonings - will do to the country's economy.
The crash on Turkey's "Black Friday" of August 10 - when the lira fell by some 16 percent - was precipitated by a tweet from US President Donald Trump doubling aluminium and steel tariffs on Turkey.
The lira's slide continued Monday, with the currency dropping as much as 10% against the USA dollar in early-morning trading before stabilizing. "It has exacerbated the strain on emerging markets, which use local currencies to pay down their dollar-backed debts". BNP Paribas (BNPP.PA) fell 1 percent. BBVA is the most exposed, followed by UCG, ING, BNPP and HSBC, whose share price was down 0.8 per cent in afternoon trading.
"This is not our base case, but even if it were to occur, the impact should be manageable for European banks", it said.
The president also appointed his son in law and former energy minister Berat Albayrak as finance minister to head a newly expanded finance ministry, a move that was given an immediate cold shoulder by markets.
Erdoğan has insisted that Turkey remains committed to the principles of an open market economy but one option for the government is to try capital controls as a way of taking pressure off the lira.
Additionally, Europe is nervous because it depends on Turkey to restrain the flow of migrants from conflict in the Middle East in return for aid.
Turkey's Foreign Minister Mevlut Cavusoglu speaks at the 10th Ambassadors' Conference in the capital Ankara. So far he's shown no sign of doing either.
Panda bonds were introduced in 2005 for foreign investors to raise money through yuan-denominated securities.