Latest News

Turkish Lira - Fresh bout of volatility for currency with elections looming

26th March 2019

Turkish lira spikes more than 2% in course of seven minutes

 

The lira surged more than 2 per cent in a matter of minutes early in the London morning on Tuesday, the latest abrupt move in a jolt of volatility that has taken hold of Turkeys currency.

Between 6.26am and 6.33am GMT, the lira spiked to TL5.4597 against the US dollar, from TL5.5592, a rise of 2.4 per cent, Bloomberg data show. The gains largely fizzled over the next hour.

The lira has been lodged since last week in a spell of acute tumult, falling on Friday by as much as 6.5 per cent, in the most dramatic move since the summers currency crisis. The countrys sovereign debt has been struck amid a broad rout in emerging markets but also amid concerns about an abrupt deterioration in Turkeys foreign currency reserves.

 

The trigger for Tuesdays surge was not immediately apparent. It occurred during an intermediary period between Asian and European trade. The lira is most actively traded in London.

The $5.1tn a day currencies market has, more broadly, been hit with several flash crashes in recent years. One earlier in 2019, that appeared to have been sparked by a worrisome outlook from iPhone maker Apple, caught investors attention since it affected several actively traded pairs, like the dollar-yen, dollar-lira and sterling-dollar.

 

The liras moves on Tuesday come during a critical time politically, with local elections on Sunday. Turkeys central bank on Monday unveiled a series of operations that helped to prop up the lira. An analyst at a large international bank added that traders were seeing domestic banks selling large quantities of foreign currency in an apparent attempt to lift the lira.

 

Credit - Financial Times

 

 

Turkish Residence Permit

---------------------------------------------------------------------------------------------------------------------------------------------------------------

Enjoy this Blog? read more Blogs:-Sign up to YellAli's weekly newsletter and receive the latest information in Turkey - Tips, procedures, advice, promotions and much more! 
|   JOIN YELLALI FOR FREE |   What is YellAli ?   |   VIEW ALL BLOGS

 

Please login to comment

username or email
Password