|Day's Range||6.553 - 7.232|
|52 Week Range||4.0738 - 7.2321|
Turkey’s embattled lira continues to rebound Wednesday for a second straight session, even as the animosity between Ankara and Washington appeared to escalate. The U.S. dollar also extended gains to touch a fresh 14-month high.
MARKET PULSE Qatar will invest $15 billion in Turkey, Turkish news site NTV reported Wednesday, citing Turkish officials. The news followed a meeting between Turkish President Recep Tayyip Erodgan and Qatar's Sheikh Tamim bin Hamad Al Thani earlier in the day.
A broader-based dollar index, the WSJ Dollar Index (XX:BUXX) which measures the buck’s strength against 16 rivals including the lira, was little changed but also in positive territory at 90.42. Elsewhere, the Turkish lira rebounded against the U.S. dollar on Tuesday following an intense few sessions of unraveling that has sparked concerns of economic contagion from Turkey. Most recently, the Turkish lira (USDTRY) was up sharply against the dollar and the euro (EURTRY) One dollar bought 6.3390 lira, down from 6.8846 late Monday in New York, dropping more than 8%.
The dramatically plummeting Turkish currency has spread fear of contagion across global financial markets. Here is everything you need to know.
Turkey’s lira grabbed currency traders’ attention Friday, dropping some 7% to a new historic low as fears grow that the country’s problems could infect Europe.
The Turkish lira extended its slide on Friday as President Recep Tayyip Erdogan in a speech called on his population to exchange dollars and gold for lira. Having called for this before, Erdogan added that it would be an effective response to the West. The lira hit a historic low against the U.S. dollar (USDTRY) and the euro (EURTRY) on Friday and spiked to session lows during the president's speech.
Britain’s pound was in focus on Monday, first rallying after the resignation of U.K. Brexit Secretary David Davis, but then dropping after Foreign Secretary Boris Johnson also resigned.
Turkey’s lira weakened against developed-market rivals Wednesday, after the U.S. Federal Reserve raised interest rates and worries about Turkey’s political future ahead of the June 24 snap election took hold of financial markets.
The Turkish lira jumped to a one-week high against the U.S. dollar on Thursday, after Turkey’s central bank delivered a sizable hike to its benchmark interest rate in response to the country’s double-digit inflation — and said it was prepared to tighten further if needed. The Central Bank of the Republic of Turkey upped its one week repo auction rate to 17.75% from 16.5% as it aimed to stabilize prices. This was the CBRT’s second rate hike within just over two weeks, and its third this quarter.
Turkey’s central bank stepped in to mitigate the fallout from the steep depreciation of its currency on Friday, marking its second such move this week. The Central Bank of the Republic of Turkey Friday said it allowed the repayments of rediscount credits at a fixed exchange rate for the Turkish lira. The credits in question regard export and foreign exchange earnings services that were extended before Friday and are due by July 31, according to the CBRT’s statement.
Turkey’s central bank intervened to halt the free fall of the Turkish lira on Wednesday, but it isn’t clear whether policy makers will be able to stave off a full-fledged currency crisis. The Central Bank of the Republic of Turkey raised its late liquidity window lending rate by 300 basis points on Wednesday, in a surprise move that put a halt to the lira selloff — at least for now. The U.S. dollar had rallied to a historic high against Turkey’s lira (USDTRY)(TRY) on Wednesday, buying 4.9233 lira at the high, before the path reversed on the back of the CBRT’s action and the lira found its feet again.
Turkey's central bank hiked its key interest rate by 300 basis points on Wednesday, and managed to stabilize its ailing currency. The late liquidity window lending rate, which is the rate local financial institutions can borrow at, was pushed to 16.5% from 13.5%. The country has been under pressure from a weakening currency, double-digit inflation and a government critical of the central bank.
Investing.com - The Turkish lira remained sharply lower against the U.S. dollar on Monday but was off the weakest levels of the session as a brewing diplomatic crisis between the U.S. and Turkey escalated.