Forex Marketz Daily Forex News – Fully Markets Update
The dollar traded near a 13 month high during Asian trade hours this morning. The dollar index, which tracks the US currency against six other Forex majors, remained firm this morning as traders looked for safe havens thanks to ongoing economic turmoil in Turkey. The Turkish lira remains on the defensive which is boosting the greenback’s appeal.
There is also weakness in the euro as traders are concerned with the exposure European banks have in Turkey.
The dollar index was flat this morning trading near its 13 month peak. The index was at 96.729, just off its high at 96.794. The high was set yesterday.
The Turkish lira stabilized. It recovered over eight percent during the North American trade session. The lira was down 0.82 percent weaker today. It is currently at $6.41 after selling off on Monday to a record low at 7.24.
The lira has lost more than two fifths of its value against the USD this year. Traders are worried that President Tayyip Erdogan’s insistence over lower interest rates. Also, the relationship between the United States and Turkey, a NATO ally is eroding.
Dollar and Forex Traders Listen to Rhetoric out of Turkey
Erdogan said that Ankara will boycott electronic products from the United States. This is in retaliation and a result of an ongoing disagreement with the United States. This rhetoric has driven his currency to record lows.
The lira did find some support. Remarks from Turkish Finance Minister Berat Albayrak were some comfort. He was supportive of the lira and said that it would regain confidence.
