57217
Turkish Lira Hits Record Low
Turkish Lira Hits Record Low

Turkish Lira Hits Record Low

Turkish Lira Hits Record Low

The Turkish lira hit record lows against the dollar as expectations of faster tightening by the US Federal Reserve added to domestic economic and political pressures emerging market equities in general slipped 0.4%.
The lira was down more than 2% to $3.72 after Friday’s data showed US wages rose in December prompting US rate hike expectations, Reuters reported.
“The lira has always been one of the most exposed EM currencies to any sign that monetary policy in the US will tighten because of its large external financing requirement,” said William Jackson, senior emerging markets economist at Capital Economics.
“Turkish domestic policymaking is playing a role too as it seems the central bank is responding to political pressure not to raise interest rates, so it is likely to be behind the curve in reacting to pressure in the currency,” he added.
The lira lost 3.2% last week, pounded by higher-than-expected inflation and security fears after a series of gun and bomb attacks. The economy has remained sluggish, with a smaller-than-expected rise in industrial production in November, whilst Moody’s has warned that bank profits will be hit by increased non-performing loans.
Turkish five-year credit default swaps rose 3 basis points from Friday’s close to 273 bps, whilst the yield premium paid by Turkish sovereign bonds over US Treasuries on the JPMorgan EMBI Global Diversified widened out 9 bps to 359 bps.

 

Short URL : https://goo.gl/W27Yr9
  1. https://goo.gl/5QWt1f
  • https://goo.gl/Y5rpNG
  • https://goo.gl/BTQ93s
  • https://goo.gl/IQivuy
  • https://goo.gl/6ZtgOI

You can also read ...

Singapore Exports See Surprise Drop
Exports from Singapore last month stumbled after four months...
Nigeria Inflation Flattens Out  at 16%
As widely anticipated, Nigeria’s headline inflation declined...
Russia Services PMI Improves
According to a report by Markit Economics, the final Russia...
Brazil August Growth Lowest in Five months
Economic activity in Brazil contracted in August at the...
Low ECB Rates an Opportunity to Reform
Easy monetary policy gives eurozone governments a window of...
Czech Economy Needs Higher Rates
The Czech koruna’s slow appreciation is paving the way for...
Outlook for Global Economy, Equity Markets Brighter
Ebrahim Rahbari remains positive on the global economy and...
OECD: Youth Likely to Face Higher Inequality in Old Age
Younger generations have been experiencing more unstable labor...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus