Turkish lira weakens beyond 4 against dollar as economy worries weigh

29/03/2018 07:50 AST

Turkey's lira weakened beyond the psychologically important level of 4.0 to the US dollar yesterday, bringing it close to a record low, as concerns about double-digit inflation, and politics, continued to weigh on sentiment.

The lira has fallen 5% against the dollar so far this year - making it the fourth-worst performer among 26 emerging market currencies. Investors have been distressed by what they see as the central bank's inability to tackle inflation head-on.

"It seems a gradual deterioration story: the geopolitics story has not materially improved," said Phoenix Kalen, a strategist at Societe Generale. "The central bank has been massively behind the curve with respect to addressing the inflationary pressures.

So in an environment where there is still the risk of rising core rates, that always places Turkey in the most vulnerable position among emerging markets." The lira briefly touched 4.0150, not far off the record low of 4.0375 touched last week. It was at 4.0060 at 1335 GMT. Inflation was at 10.26% in February after hitting 12.98 at the end of last year, the highest in more than a decade.

The central bank has refrained from lifting its benchmark policy rate, using other tools to tighten liquidity. Investors are looking ahead to March inflation data, due to be released next week.


Gulf Times

Most Viewed Companies

Ticker Price Volume
NADEC 27.30 1,369,614
ARDCO 29.25 233,374
DU 6.55 441,215
A.OTHAIMMARKET 11.90 545,416
HERFYFOODS 26.10 412,306
MIS 183.20 17,353
LUMI 77.50 102,302

Exchange Rate against US Dollar

US Dollar 1.00
Euro 0.88
British Pound 0.77
Japanese Yen 113.21
Saudi Riyal 3.75
Kuwaiti Dinar 0.30
Derham Emirati 3.67
Bahraini Dinar 0.38
Omani Riyal 0.39
Qatari Riyal 3.67

Recent News

Oman can defend its currency peg, central bank governor says

05/04/2018

Oman has the means to maintain its currency peg and has no plans to change it even though the decline in oil prices has hurt its finances, central bank Governor Tahir Al Amri said.

Oman's g

Gulf News

China's yuan to post biggest quarterly rise against dollar in a decade

02/04/2018

China's yuan firmed against the dollar on Friday and is set to post its biggest quarterly gain in a decade, as the country attracts capital inflows and US trade frictions bolstered expectations of a

Gulf News

US dollar share of global currency reserves hits 4-year low - IMF

01/04/2018

The US dollar's share of currency reserves reported to the International Monetary Fund declined in the final quarter of 2017 to a four-year low, as other currencies' shares of reserves grew, data rel

Gulf News

US dollar weighed down by trade and interest rate policies

29/03/2018

The US Dollar Index, a measure of the value of the US dollar against a basket of currencies, teetered and dropped to quarterly lows in March, which also happen to be the lowest the index has been sin

The National

Iran currency hits record low, crashing through 50,000 mark

27/03/2018

The Iranian rial fell to a record low yesterday, breaking through the 50,000-to-the-dollar mark for the first time as analysts blamed uncertainty from Washington. The rial has lost around a quarter o

Gulf Times

logo

Financial Information Co.

(MITCO), P.O. Box 69410, Riyadh 11547, Saudi Arabia

GCC Markets

Mutual Funds

News

Investment Tools

Sector News

Screeners

Indices & Commodities

Downloads

Copyright ©2001 - 2024, Financial Information Co. All Rights Reserved.

Terms of Services | Privacy Policy | Advertise with us | Contact Us | Sitemap