|Day's Range||5.36 - 5.384|
|52 Week Range||3.9399 - 7.0738|
Investing.com -- Sterling is center stage again Tuesday morning in Europe after U.K. lawmakers voted on Monday night to take control of the Brexit process from the government of Prime Minister Theresa May.
Many currencies, including the majors, are retracing last week’s movements on Monday, leading to little action in the U.S. dollar and euro, as well as a rebound from losses in emerging markets.
Emerging market stocks fell on Monday, tracking a global-sell off with investors ditching shares and piling into the safety of bonds on concerns over slowing global growth and fears of a U.S. recession. The U.S. dollar took a back seat, lifting most developing world currencies with Turkey's lira in recovery mode after plunging as much as 5 percent in the previous session. Weak economic data from Europe triggered a worldwide sell-off on Friday which worsened after more disappointing numbers from U.S. came in, fanning global growth fears.
The Turkish lira strengthened to 5.6775 against the dollar in early trade on Monday, having tumbled more than 4 percent on Friday, its biggest one-day fall since a currency crisis took hold last August. ...
Investing.com -- The dollar is edging lower early Monday in Europe but holding on to most of the gains it made during Friday’s big risk-off movement in global markets.
Turkey's lira plunged more than 4 percent against the U.S. dollar on Friday, its biggest one-day fall since a currency crisis took hold in August, raising concerns that Turks are buying more foreign cash as ties with Washington deteriorate. The average cost of funding in Turkey saw a near record jump. The lira was on track for its weakest close since October.
Turkey’s lira is one of the worst performers against the U.S. dollar in Friday trading, as the greenback rallies more than 4.5%.
Tuesday’s price action in the Indian rupee, that saw the currency hit a seven-month high and then retreat offers a warning to investors about emerging markets.
While macroeconomic forces are favorable for the Turkish lira, we recently reduced our long exposure as geopolitical risks rise. The Turkish lira is currently one of the two largest long exposures in our currency strategy (along with the Philippine peso). The lira remains very undervalued, but we have concern that geopolitical risks may threaten it going forward.
Turkey’s 2018 currency crisis comes home to roost, with data on Monday showing the country’s economy meeting a widely used definition of recession the final quarter of last year. What’s perhaps worse, is that Turkey’s central bank might not have the tools to get out of it.
Turkey's lira weakened on Friday, continuing its decline due to worries over a possible deterioration in ties with Washington over Ankara's push to buy S-400 missile defence systems from Russia. Turkey and the United States have been at loggerheads over Ankara's decision to purchase Russian S-400 systems, which are incompatible with NATO systems. Washington has warned the move could jeopardise other defence industry deals between the NATO allies or even lead to U.S. sanctions.
Credit rating firm S&P Global expects Turkey's lira to fall steadily for the next three years and the level of bad bank loans to double to 8 percent in the next 12 months. "We see the currency steadily depreciating all the way to 2022" S&P sovereign analyst, Maxim Rybnikov, said during a webcast question and answer session on Tuesday. Banking sector analyst Magar Kouyoumdjian added that the level of non-performing loans (NPLs), defined as loans with payments at least 90 days overdue, would top out at around 8 percent around the end of the year although a broader definition of problem loans would reach 15-20 percent.
Turkey's lira weakened by nearly half a percent on Tuesday, a day before the central bank's inflation report and amid concerns that inflation will rise in the first quarter on the back of food prices. The central bank is expected to announce its quarterly inflation report at 0730 GMT on Wednesday.
Last year was painful for emerging market currencies, but it looks like 2019 might not be much better.
Most emerging market currencies firmed against the dollar on Wednesday, with Turkey's lira strengthening ahead of a central bank rate decision, while stocks in the developing world notched a six-week peak. Turkey's central bank sets borrowing costs later in the day, with a Reuters poll predicting the key rate will remain at a formidable 24 percent despite moderating inflation. The lira was 0.8 percent firmer after hitting its strongest level against the dollar in more than a week.
Turkey's lira weakened against the dollar on Monday after U.S. President Donald Trump warned the United States would devastate Turkey economically if Ankara attacks a Washington-backed Kurdish militia in Syria. The lira, which lost nearly 30 percent of its value against the dollar last year, eased to 5.53 against the U.S. currency by 0736 GMT from a close of 5.4540 on Friday after touching 5.5450 in early morning trade. President Donald Trump threatened Turkey with economic devastation if it attacks a U.S.-allied Kurdish militia in Syria prompting response from Ankara warning for a fatal mistake.
The Turkish lira fell sharply against the U.S. dollar as well as the euro on Tuesday amid a perceived hit to relations between Turkey and the U.S. over military involvement in Syria.
Turkey's lira weakened some three percent on Tuesday amid increased expectations of an early loosening in monetary policy after data showed the country's annual inflation rate eased in November from a 15-year peak. The lira fell sharply earlier this year due to investors' concerns over the central bank's ability to respond adequately to high inflation as it faces pressure from President Tayyip Erdogan to lower borrowing costs. Efforts to mend strained diplomatic relations with the United States have also supported the lira.
Emerging market stocks fell for the first time in four days on Monday, hit by the prospect of faster rises in U.S. interest rates and uncertainty around the China-U.S. trade war, while data showing rising inflation hit the Turkish lira. U.S. jobs numbers on Friday bolstered expectations of another hike in rates in December, while hopes of a trade agreement between China and U.S. were quashed by comments from the White House. "The payroll data is a cause as (there is) anticipation of another Fed hike in the near-term and (that) may have weighed in on some emerging market currencies," said William Jackson, chief emerging markets economist at Capital Economics.