The Turkish lira is slumping to its lowest level against the US dollar in two months as investors fear that it is poised for another currency crisis. The lira has been steadily rebounding since falling to an all-time low against the greenback, but analysts warn that the fundamentals, from inflation to foreign exchange reserves, do not support its gains. Is another crash going to happen soon?
The Turkish lira is struggling for direction on Thursday as the central bank unexpectedly left interest rates unchanged for the first time in a year. Policymakers are ostensibly concerned about ballooning inflation, while analysts are worried about depleting foreign exchange reserves. The lira had bounced initially on the news before trimming its gains, leaving many to wonder where the currency is headed.
The Turkish lira is weakening against many of its currency competitors midweek as the government auctions millions in T-bills to keep the government’s finances afloat. The lira, which has come under enormous pressure this year, has stabilized over the last month. But a mix of a financial crisis and the coronavirus pandemic has impacted Turkey’s fragile economy.
The Turkish lira is weakening against several major currency rivals midweek, primarily caused by the spike in inflation last month that may give policymakers enough fuel to cut interest rates. Investors are also going sour on the lira on Wednesday on new data that suggests the central bank ramped up foreign currency borrowing in April to stabilize the lira.
The Turkish lira is strengthening against several major currency competitors on Tuesday as investors anticipate the central bank to cut interest rates. Forex markets are also optimistic that Ankara can establish swap lines with foreign central banks to mitigate its currency crisis. The lira has been rebounding since it crashed to a record low against the US dollar earlier this month.
The Turkish lira is slightly rebounding on Thursday after crashing to a record low against the US dollar early on Thursday. Investors are nervous about Turkey’s response to the economic fallout from the coronavirus pandemic, as well as the decline in the central bank’s reserves. Could the world bail out Turkey once the COVID-19 crisis subsides?
The Turkish lira rallied today despite the fact that Turkey’s central bank decided to lower its one-week repo auction rate.
The Turkish lira managed to gain today even after Turkey’s inflation slowed more than was expected.
The Turkish lira fell against the US dollar today after geopolitical tensions between the United States and Turkey flared.
The Turkish lira opened sharply lower today compared to the Friday’s close after the news that Turkish President Recep Tayyip Erdogan sacked central bank’s governor Murat Cetinkaya, giving the office to his deputy instead.
