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ISTANBUL (Reuters) -Turkey’s lira tumbled to a record low of 8.6 versus the dollar on Friday as it took a hit from global inflation concerns, expectations that the central bank will soon cut interest rates and worries over possible early elections.
FILE PHOTO: Turkish lira banknotes are seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration
The lira - by far the weakest performer in emerging markets this year - slipped beyond its November intraday low of 8.58, marking the latest step in a years-long depreciation that has dogged the Middle East’s top economy.
It recouped some losses and was at 8.575 against the U.S. currency at 10:52 GMT, ahead of a review by S&P Global that could downgrade its Turkey credit rating. It also logged a new nadir of 10.4696 against the euro.
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ISTANBUL (Reuters) - Turkey’s lira edged lower in early trading on Monday, adding to a recent slide and nearing an all-time low as a chill settled on relations with the United States and after the new central bank chief signalled that rate hikes would harm the economy.
FILE PHOTO: Turkish lira banknotes are seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration
The currency, among the worst performers in emerging markets this year, touched 8.425 versus the dollar, nearing its low water mark in 2021 and close to its record 8.58 reached in early November.
“Market negativity is intense. (The) risk of an overshooting episode is unfortunately elevated,” said Robin Brooks, chief economist at the Institute of International Finance.
4 Min Read
ISTANBUL (Reuters) -Turkey’s lira slid on Monday to near an all-time low as a chill settled on relations with the United States, and after the new central bank chief signalled that rate hikes would harm the economy.
FILE PHOTO: Turkish lira banknotes are seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration
The currency, among the worst performers in emerging markets this year, weakened as much as 0.6% to 8.48 versus the dollar, close to its 2021 low water mark and closing in on its record of 8.58 reached in early November.
“Market negativity is intense. (The) risk of an overshooting episode is unfortunately elevated,” Robin Brooks, chief economist at the Institute of International Finance, said on Twitter.
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FILE PHOTO: The central bank headquarters building is seen in Brasilia, Brazil May 16, 2017. REUTERS/Ueslei Marcelino/File Photo
LONDON (Reuters) - Emerging market central banks delivered five net interest rate hikes in March, marking the end of an easing cycle which started in 2019 as central banks in the developing world grapple with rising inflation pressures.
Across a group of 37 central banks in developing economies, policy makers in Ukraine, Georgia, Brazil, Turkey and Russia raised interest rates, many delivering bigger hikes than expected. This follows a total of two net interest rate cuts in February.
For an interactive version of the graphic, click here here.
By Reuters Staff
3 Min Read
LONDON, April 15 (Reuters) - Turkey’s central bank held rates steady at 19% as expected on Thursday in its first decision since President Tayyip Erdogan fired the hawkish former governor. But it dropped a pledge to raise them again if needed.
JOHN HARDY SAXO BANK HEAD OF FX STRATEGY
“They removed the reference to continued tightening of policy, obviously that was a relic of the previous leadership.”
“Turkey is in a real bad spot in terms of attracting inflows and it is dealing with a massive COVID outbreak. We are seeing the lira weakening on the back of this and there is a likelihood that it continues.”