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USD Lihui and the Turkish lira at the lowest level in 28 years DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

USD Lihui and the Turkish lira at the lowest level in 28 years

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USD Lihui and the Turkish lira at the lowest level in 28 years Empty USD Lihui and the Turkish lira at the lowest level in 28 years

Post by RamblerNash Tue Mar 27, 2018 10:42 pm

USD Lihui and the Turkish lira at the lowest level in 28 years

USD Lihui and the Turkish lira at the lowest level in 28 years Image

26-03-2018 05:09 PM

The Euphrates -
 
The dollar fell to a one-month low against a basket of other major currencies on Monday, as fears of trade tensions between the United States and China eroded and risk appetite receded.

The Turkish lira had the largest share of losses, hitting its weakest against the dollar in almost three decades, amid investors' reluctance to risk assets.

The dollar index, which measures the strength of the dollar versus a basket of six major currencies, fell 0.26% to 88.87 by 09:02 EDT, the lowest level since Feb. 16.

This comes in conjunction with a report by The Wall Street Journal that Beijing and Washington are negotiating behind the scenes to improve access to Chinese markets, after a week of threats to trade tariffs.

The report helped ease fears of a trade war between the two countries, which investors fear could affect US growth and disrupt global growth.


Safe havens lost some of their gains, with gold prices falling near $ 1,348 an ounce, while the virtual currencies retreated slightly as they tried to consolidate above $ 8,000, and Etherium was trying to stay above $ 500.

On the other hand, the euro rose to a two-and-a-half-year high against the dollar, with trading up 0.4% to 1.2400.

The single currency was strengthened after Jens Weidemann, the likely German candidate to become the next president of the ECB, said market expectations for a rate hike in mid-2006 were "not entirely unrealistic."

Meanwhile, the British pound was up against the greenback, gaining 0.47% to hit 1.4196.

The AUDUSD rose 0.27% to 0.7719, while the New Zealand dollar was up against the US dollar by 0.61% to trade at 0.7277.

A difficult period for the Turkish lira In

return to Turkey, the lira witnessed a difficult session in Asian markets, where it plunged in just 15 minutes, 2.3%, the weakest level in 28 years.

Most of the Turkish currency investors came from Japanese investors who rushed to sell the lira to avoid investing in it.

The pound has suffered losses of 4.4% since the beginning of the month amid concerns about the impact of the Turkish economy with inflation rising to 12%.

What does not help the currency is the growing concern about its entry into a 'downward spiral' as a result of the weak exchange rate, which increases the inflationary situation that has put pressure on the Turkish currency.

Turkey suffers from a worsening current account deficit, which makes its economy vulnerable to external shocks. The low interest rate and continued worsening of the deficit have made the Lira vulnerable to risk aversion.

According to analysts, the only solution for Turkey is to raise interest rates, but it is not clear whether the appetite of policymakers will allow this move.

http://www.alforat.info/index.php?page=article&id=56077
RamblerNash
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