|Day's Range||4.706 - 4.706|
|52 Week Range||3.3892 - 4.9110|
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 lira is in the grip of one its worst routs of modern times but markets are sensing more weakness ahead and could push authorities to do more than this week's 3 percentage-point rate hike to turn the tide. Roiled by problematic politics, big deficits and double-digit inflation, the lira is heading for its worst week and month in almost nine years. The modern lira's biggest-ever slump was a 36 percent drop over roughly six weeks at the height of the 2008-09 global financial crisis.
Turkey is on the verge of a currency crisis that could pose a threat to President Recep Tayyip Erdogan’s re-election bid, and he may have himself partly to blame. The Turkish lira is down around 24% against the U.S. dollar this year, and has dropped some 16% since the beginning of May, according to FactSet data. Erdogan last month called for an election on June 24, nearly a year-and-a-half ahead of schedule, in what was seen as a bid to capitalize on his popularity and consolidate power.
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 lira suffered another fall on Thursday, more than wiping out the gains made in the wake of Wednesday's emergency rate hike, while wider emerging markets booked cautious gains thanks to a lacklustre ...
The recent history for the Lira says that in January of 2005, after a devastating fell of the currency a new version of the Turkish Lira was issued. Lira’s value fell so dramatically that the conversion was $1 to 1.5 million TRY. As the Turkish economy mostly relies on quick short term profits on higher interest rates that make the currency very sensitive on any global economy headwinds and the subsequent risk off environment may lead to massive depreciations of the Lira.
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.
U.S. Treasury yields fell on Wednesday as concerns about the tumbling Turkish lira boosted demand for lowd-risk debt, and before the Treasury Department will sell $36 billion in 5-year notes, the second sale of $99 billion in coupon-bearing supply this week. The Turkish lira dropped more than 5 percent before recovering some ground, the latest sell-off that reflects growing investor alarm over the direction of monetary policy under President Tayyip Erdogan. A self-described "enemy of interest rates," Erdogan wants borrowing costs lowered to spur credit growth and construction, and said last week he would seek greater control over monetary policy after elections set for June 24.
Central Europe's main currencies approached multi-month lows on Wednesday as weak manufacturing data knocked the euro down further against the dollar, while the Turkish lira's persistent decline fuelled ...
The dollar edged higher versus a basket of currencies on Wednesday, with investors awaiting the minutes of the Federal Reserve's last policy meeting for hints on the pace of further U.S. monetary tightening. The increase marked a gain of more than 5 percent from mid-April and was driven by generally upbeat U.S. economic data and expectations the Fed would raise interest rates at least two more times this year. The yen gained broadly on Wednesday, as investors sought safer assets amid economic concerns after U.S. President Donald Trump tempered optimism over progress made so far in trade talks between the world's two largest economies.
Emerging-market bonds are reeling as a result of the dollar’s rebound, which is putting a strain on countries and corporations that found it difficult to resist issuing debt in the U.S. currency. “The dollar remains the single most important consideration for EM finances,” said James McCormack, global head of sovereigns for Fitch Ratings. Issuing dollar-denominated debt instead of government paper in local currencies can often result in cheaper borrowing, as risk-averse investors paid a premium for receiving interest payments in the more stable greenback.
Turkey’s currency hit a fresh historic low against the U.S. dollar Tuesday, after President Recep Tayyip Erdogan said he wanted to take more responsibility for monetary policy in the country, stoking concerns about the independence and credibility of Ankara’s central bank. The dollar last fetched 4.4411 lira (USDTRY)(TRY), up 1.7%, just below its session and historic high of 4.4749. The buck has rallied 9.3% against the lira in May, and 17.1% in the year-to-date, according to FactSet data.
The Turkish lira hit a new all-time low against the U.S. dollar on Friday, adding the cherry on top of a week filled with negative headlines for Turkish assets. On Tuesday, S&P Global Ratings downgraded Turkey's foreign currency rating to BB-/B, citing risk of a "hard landing" and imbalances in the economy. Deputy Prime Minister Mehmet Simsek criticized the timing of the downgrade weeks before the country's snap presidential election, according to local news.
The Turkish lira weakened as far as 4.24 against the dollar on Friday, nearing the record low which it touched a day earlier after data showed consumer price inflation jumped more than expected in April. ...
Stress levels rose in emerging markets on Thursday as Argentina's peso and Turkey's lira slumped to record lows in what looked like classic currency attacks and shares fell for a third day. The pressure was widespread against the backdrop of a rising dollar and global borrowing rates and after more unpredictable behaviour on metal export tariffs from U.S. President Donald Trump's administration towards Brazil overnight. It combined to push MSCI's 24-country emerging market stocks index towards a three-month low though tensions were highest in foreign exchange markets.
It will take more than a snap election to fix Turkey’s fundamental economic problems or provide more than a temporary lift to the long-suffering lira. Turkey’s currency got a boost last week from President Recep Tayyip Erdogan’s surprise decision to call an early election for June 24 that he’s expected to win. The poll pre-empts a scheduled November 2019 election and victory would grant Erdogan another five years in office.
Turkey's lira took a breather on Thursday, a day after clocking its biggest one-day advance in more than a year after President Tayyip Erdogan declared early elections on June 24. The lira, which has plumbed a series of record lows in recent weeks on widening concern about double-digit inflation and the outlook for monetary policy, surged 2.2 percent on Wednesday, its biggest one-day advance since January 2017, after Erdogan called for early presidential and parliamentary polls. Erdogan on Wednesday called for the snap elections, saying economic challenges and the war in Syria meant Turkey must quickly switch to the powerful executive presidency that goes into effect after the vote.
The yen hit a 16-month high against the dollar on Friday, while the Turkish lira skidded to a record low as rising global trade tensions triggered a bout of investor jitters. The yen rose amid talk of position unwinding by Japanese retail investors, who had held long positions in higher-yielding currencies such as the Turkish lira against the Japanese currency. The Turkish lira slid by more than 3 percent against the yen early on Friday.
By Saqib Iqbal Ahmed NEW YORK (Reuters) - The U.S. dollar hovered near a one-month low against a basket of major currencies on Friday and was on course for its biggest weekly drop in five as investors worried that escalating trade tensions could hurt global growth. The dollar index , which measures the greenback against a basket of six other major currencies, was down 0.48 percent at 89.427. For the week, the index was down 0.9 percent.
The yen hit a 16-month high against the dollar on Friday, while the Turkish lira skidded to a record low, as concerns over rising global trade tensions triggered a bout of investor risk aversion. The yen rose broadly amid talk of position unwinding by Japanese retail investors, who had held long positions in higher-yielding currencies such as the Turkish lira against the Japanese currency. According to Reuters data, the Turkish lira slid by more than 3 percent against the yen early on Friday.
Against the euro, the Turkish currency hit a record low of 4.8238. London-based Rabobank strategist Piotr Matys said a wider than anticipated Turkish current account deficit this week had triggered a spike in bond yields which had fed through to the currency.
The Turkish lira hit a record low against the euro and bond yields rose to the highest in more than three months on Tuesday, as investors fretted about a widening current account, conflict in Syria and the possibility of early elections. The lira weakened as far as 4.7761 to the euro and against the dollar touched a low of 3.8715, its weakest since mid-December. "The lira has fared much worse than other emerging market currencies and that seems like a response to a worsening of the Turkish data," said William Jackson, a senior emerging markets economist at Capital Economics.
Emerging stocks held at two-week highs on Tuesday but gains were limited as investors awaited U.S. inflation data for hints on the pace of Fed rate rises, while the Turkish lira hit a near three-month low after a controversial voting law was passed. Inan Demir, senior emerging economist at Nomura International, said Friday's U.S. payrolls data had been strongly supportive of risk sentiment, thanks to its "Goldilocks" nature, showing rising employment but muted wage growth. The Turkish lira fell 0.7 percent against the dollar to its lowest since mid-December after parliament passed a controversial law revamping electoral regulations.
Emerging stocks bounced on Friday, thanks to robust Chinese data and higher tech shares while the Turkish lira and shares headed for big weekly gains as some of the risks to the country's banks appeared to recede. A firmer dollar after the resolution of the U.S. debt ceiling issue and an upcoming Federal Reserve rate rise kept most emerging currencies flat to weaker on the day, with many investors on the sidelines before U.S. jobs data that could determine the tone of the Fed's message next week. The lira was flat but has risen two straight weeks, soothed by expectations of a big rate rise on Dec. 14, pledges of government support for banks and developments in the U.S. trial of an executive of a Turkish bank.