|Day's Range||5.704 - 5.734|
|52 Week Range||5.1344 - 6.8082|
Investing.com -- Risk sentiment returned to the foreign exchange markets early Friday in Europe, with the Swiss franc and yen retreating against the dollar, and the dollar retreating against the pound as a week of turbulent newsflow drew to a comparatively quiet close.
Turkey's lira weakened more than 1% on Monday, losing ground after firming to a four-month high last week as investors took a more cautious approach to emerging markets currencies. The lira declined some 1.4% to stand at 5.5670 at 0921 GMT on Monday, a public holiday in Turkey due to the Eid al-Adha observance. It has recently outperformed other emerging market currencies, firming on Thursday to 5.4515, its strongest level since April.
Turkey's lira has risen in recent months despite Ankara abruptly sacking the central bank governor and risking U.S. sanctions over Russian missiles, silencing for now critics who had warned such moves could cause another currency crisis. The lira has been a fortunate beneficiary of the U.S. Federal Reserve's shift to a more supportive stance, which has boosted emerging markets, especially relatively cheap Turkish assets, since the currency hit an eight-month low in May. An escalation this week in the U.S.-China trade war and Beijing's devaluation of the yuan could prompt the Fed to do yet more to weaken the dollar, giving the lira room to run.
Turkey's lira weakened on Thursday after the U.S. Federal Reserve cut interest rates by a quarter percentage point but also signalled that a long easing cycle was unlikely, which could check a recent rally in emerging market currencies. Despite a larger-than-expected rate cut from the Turkish central bank last week, the lira was propped up by expectations that the Fed would begin a series of rate cuts this week, as well as a more dovish European Central Bank. The Fed cut its target interest rate to 2.00-2.25%, a move widely expected by financial markets.
(Bloomberg) -- BeIN Media Group’s Turkish unit is considering walking away from a contract to show the country’s top soccer league unless the broadcaster can negotiate some relief from the slump in the lira, according to two people familiar with the matter.Digiturk, as the Qatari broadcaster’s Turkish unit is known, has held a dozen meetings over the past two months with the Turkish Football Federation and soccer clubs over the exchange rate clause in its 2016 agreement, said the people, who asked not to be named because the deliberations are confidential.The deal was signed when the lira was around 3 per dollar, and the currency has since lost more than a third of its value against the greenback. Digiturk is proposing its $500 million annual payments be fixed at closer to 5 lira per dollar, the people said.The dispute throws into question the 2019-2020 Super Lig season, which starts Aug. 16. The parties are considering meeting this week to try to resolve the matter, the people said. The broadcaster has withheld a $125 million pre-season down payment as part of its annual fee, and the talks affect the rate that will apply to this and the next two seasons.BeIN and TFF declined to comment on the content of the talks. The lira’s drop has “decimated” the value of the TFF broadcast rights, BeIN said in emailed comments in response to questions.Nihat Ozdemir, head of TFF, said in a phone interview: “We are working to reach an agreement and our talks are continuing in a positive direction.”The two sides are battling to rework a clause setting the formula for payments to the federation, something that its cash-strapped soccer clubs badly need. Digiturk has said a September presidential decree to accommodate exchange rate fluctuations in state contracts allows it to offer an adjustment to the formula that governs its payments, but TFF and the clubs have rejected its suggested changes, the people said.The current contract requires half of Digiturk’s fee to be paid in dollars and is subject to the exchange rate on the date of payment, currently 5.6 lira, the people said. The other $250 million is paid in lira at a rate of 3.26 lira per dollar, as at the date of the original agreement, and is adjusted for consumer and producer price inflation at every subsequent payment date, they said. Soaring prices have caused the cost of this payment to surge -- CPI reached 25.2% in October, though has since cooled to 15.7% in July.BeIN won the rights to broadcast Turkish Super Lig rights for five years from 2017-18 season. It will continue with its other broadcast rights in Turkey, such as UEFA Champions League and La Liga, even if the Super Lig negotiations fall apart.Soccer is among Turkish industries seeking a total of $28 billion of debt restructuring from lenders faced with a growing pile of bad loans after the currency’s plunge last year stoked inflation and raised funding costs. Turkey’s four listed soccer clubs -- Fenerbahce, Galatasaray, Besiktas and Trabzonspor -- are counting on the payments from Digiturk: all have either restructured their debt already or are in talks with banks to do so.(Updates with context on clubs in last paragraph.)To contact the reporters on this story: Ercan Ersoy in Istanbul at firstname.lastname@example.org;David Hellier in London at email@example.comTo contact the editors responsible for this story: Rebecca Penty at firstname.lastname@example.org, Jennifer Ryan, Paul AbelskyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The Turkish lira weakened slightly early on Friday, giving up some of the gains made the previous evening as U.S. President Donald Trump was unclear over whether his administration was looking at imposing sanctions on Turkey. The currency had firmed late on Thursday from levels around 5.7 earlier in the day after Trump said the United States is not currently looking at sanctioning Turkey over its purchase of the Russian defence system. "It's a very, very difficult situation for a lot of reasons," Trump said, when asked if he had ruled out sanctions on Ankara.
The Turkish lira firmed on Thursday afternoon after U.S. President Donald Trump said the United States is not currently looking at sanctioning Turkey over its purchase of Russian air defence systems. The currency was steady earlier in the day, shrugging off the U.S. decision to remove Ankara from the F-35 fighter jet programme after it began receiving delivery of the Russian S-400 missile defence system last week. The lira briefly firmed to 5.6140 against the dollar following Trump's comments, before weakening to 5.6325 against the dollar at 1716 GMT.
The Turkish lira was 1.3% weaker against the dollar on Friday over U.S. sanction worries, after Russia delivered S-400 air defence missile system parts to Turkey. The first parts of the S-400 air defence system were flown to a military air base near the capital Ankara, a move expected to trigger U.S. sanctions against a NATO ally and drive a wedge into the heart of the Western military alliance. Cristian Maggio, head of emerging markets strategy at TD Securities, said markets had barely begun to react to the S-400 delivery and that U.S. sanctions risks should not be underestimated.
BoJ Governor mentioned that the Bank would make necessary adjustments in the monetary policy to attain its inflation target. After facing a severe pullback on July 5, the EUR/USD pair had appeared to cling near 1.1228 mark.
Turkish President Recep Tayyip Erdogan’s decision over the weekend to oust the country’s top central banker might make U.S. President Donald Trump jealous, but it runs the risk of sending Turkey into a full-blown currency crisis, analysts said Monday.
Turkey's lira weakened on Monday after President Tayyip Erdogan dismissed the central bank governor, reigniting concerns about political interference in monetary policy and expectations of rate cuts to revive the recession-hit economy. "His removal speaks to Erdogan's insistence on imposing his diktats on monetary policy, and more broadly, it suggests tight presidential control of economic policies," said Phoenix Kalen, EM strategy director at Societe Generale.
Investing.com -- The dollar was slightly lower in early morning trading in Europe, but holding on to most of the gains it posted after Friday’s stronger-than-expected U.S. employment report forced a rethink on the Federal Reserve’s future interest rate path.
The Turkish lira weakened to 5.8125 against the U.S. dollar on Sunday evening from 5.6345 in the last U.S. trade on Friday, after President Tayyip Erdogan dismissed the central bank governor early on Saturday. Governor Murat Cetinkaya, whose four-year term was due to run until 2020, was replaced by his deputy Murat Uysal, a presidential decree published early on Saturday in the official gazette showed. Erdogan sacked the central bank governor for refusing the government's repeated demands for rate cuts, Hurriyet newspaper on Sunday quoted Erdogan as telling a meeting with his party's lawmakers.
The Turkish lira weakened to 5.79 against the U.S. dollar on Sunday evening from 5.6345 in last U.S. trade on Friday, after President Tayyip Erdogan dismissed the central bank governor early on Saturday. Governor Murat Cetinkaya, whose four-year term was due to run until 2020, was replaced by his deputy Murat Uysal, a presidential decree published early on Saturday in the official gazette showed. Erdogan sacked the central bank governor for refusing the government's repeated demands for rate cuts, Hurriyet newspaper on Sunday quoted Erdogan as telling a meeting with his party's lawmakers.
The Turkish lira soared nearly 2.8% on Monday to its strongest level since April after President Tayyip Erdogan said he heard from U.S. President Donald Trump there would be no sanctions over Turkey's purchase of Russian S-400 defence systems. On track for its biggest daily jump in weeks, the lira at 1308 GMT stood at 5.63 against the dollar, its best reading since April 8. The currency closed at 5.7875 on Friday, before Erdogan met Trump at the G20 summit in Japan at the weekend.
Moody's Investors Service has today affirmed the Baa3 rating of a junior senior unsecured bond instrument (ISIN:DE000HV5L1V1) issued by UniCredit Bank AG (UCB, deposits A2 stable/senior unsecured A2 stable, Baseline Credit Assessment (BCA) baa2). The affirmation of UCB's Turkish lira-denominated junior senior unsecured bond reflects Moody's view that the risks to a timely settlement of the principal payment obligation under this zero-coupon bond have not significantly increased, despite an increasing probability of policy measures that could constrain the ability of the issuer to access Turkish lira.
Investing.com -- The dollar continued its decline in early trading in Europe Tuesday, with the yen and euro strengthening as traders anticipate the erosion of the interest rate premium on dollar assets.
A popular exchange-traded fund that tracks Turkey’s stock market is climbing on Monday after Ekrem Imamoglu of the opposition Republican People’s party won a key closely watched mayoral race over the weekend,
Turkey’s lira currency has opened higher against the U.S. dollar on Monday after a repeat election for mayor in Istanbul ended months of uncertainty with a landmark opposition win in the country’s largest city.
The Turkish lira, bonds and shares gained on Monday after the opposition dealt a stinging blow to President Tayyip Erdogan by winning control of Istanbul in a re-run mayoral election on Sunday. Turkish assets have lost value since March amid uncertainty over how the vote might affect Erdogan's economic policies and concern over strained relations between Ankara and Washington related to Turkey's purchase of Russian S-400 defence systems. One banker said the outcome had removed a source of political uncertainty and markets were hoping the government would now shift its attention to the economic reforms that Turkey needs.