Lira falls as Fed signals possible Dec. rate rise

The Turkish lira weakened against the US dollar on Thursday after top US Federal Reserve officials kept the door open to a December interest rate hike.
One US dollar bought TL 2.8633 early on Thursday, down from TL 2.804 on Monday when the election results boosted markets. Thursdayand’s fall meant an end to the Turkish liraand’s winning streak and market experts highlighted that it may lose further value. A possible interest rate hike by the US Federal Reserve (Fed) would have repercussions on all emerging markets with depreciation in the value of local currencies and growing risk aversion by lenders, ratings agency Moodyand’s warned this week. A Fed rate increase might then increase the chances that Turkeyand’s central bank would also tighten, something that political pressure has kept it from doing. The lira has lost more than 30 percent of its value against the dollar this year, making it one of the worst performers among emerging markets.
Turkish assets rallied on Monday, with the lira firming more than 3.8 percent against the dollar to 2.804 from 2.9135 on Friday and Borsa Istanbul (BiST) surging nearly 5 percent. The lira was on track for its biggest one-day gain since November 2008 while BiST saw its highest level since July and its biggest one-day jump in two years.

SOURCE: TODAY’S ZAMAN

Related Post
مرفق الشركة كارلسبادفي الولايات المتحدة يجتاز تفتيش إدارة الغذاء والدواء الأميركية وهيئة ترخيص الدواء في
– Nexen Tire America, Inc. breaks ground for its new tire technology center in Ohio, United
– Company’s Carlsbad, U.S., manufacturing facility passes FDA and EMA inspections – Underscores capabilities as