- The Turkish lira trades ~3.5% lower against the dollar but recoups some of earlier losses of more than 10% after Turkey’s central bank announced it lowered reserve requirement ratios for banks and pledged to take all necessary measures to maintain financial stability.
- Turkey’s lira pulled back from an overnight record low of 7.24 to the dollar after Pres. Erdogan reiterated his opposition to raising interest rates and said the lira's recent free-fall was the result of a foreign plot and did not reflect Turkey’s economic fundamentals.
- Analysts had hoped to see a rate hike and tightening of monetary policy to try to help halt the lira's decline.
- "The decline in the lira is multifaceted, caused not only by a weak external position in terms of current account deficit and inadequate currency reserves, but also the challenging political environment which exacerbates the vulnerabilities in the lira," says Kerry Craig, global market strategist at J.P. Morgan Asset Management.
- ETFs: UUP, UDN, USDU, TUR, TKF, TUSC
- Now read: The Turkish Hamam Is Getting Too Hot For European Banks. Avoid The Bazaar!
Original article