Forex Marketz Daily Forex News – Fully Markets Update
The dollar index, which tracks the US currency against a basket of six Forex pairs, was trading firm near a 13 month high during the morning Asian trade hours.
Traders are still worried about the political turmoil in Turkey as well as the economic slowdown in China. This is supporting safe have assets and taking its toll on emerging market currencies.
The dollar index was last trading at 96.756. It hit a new 13 month high during the previous trade session.
The dollar was supported thanks to a weakness in emerging market currencies. This weakness, at first, was thanks to a selloff in the Turkish lira. The lira was down to an all-time low at the beginning of the week. There are mounting tensions between Turkey and the United States. Also, traders are more and more worried that President Tayyip Erdogan’s economic policy will hurt his currency and economy.
The lira has recovered to 6.00 per dollar. It had hit a record low of 7.24 on Monday.
Dollar Traders take advantage of Emerging Market Weakness and Rates
The recovery in the Turkish lira has not helped other emerging market currencies.
The Indian rupee is still trading near a record low. The South African rand sold off better than two percent overnight during early Asian trade hours.
The Chinese yuan is still looking weak. The yuan is trading at its weakest price point in fifteen months. A slew of Chinese economic data points to a slowing economy.
