Dollar falls below 2 liras after Summers quits race

ISTANBUL – Hürriyet Daily News

The dollar has tumbled to 1.9930 against the lira, which has been declining in value over the past few weeks due to the possibility of a United States-led military strike against Syria. DHA photo

The dollar fell below 2.000 against the Turkish Lira after a three-week period in which tension in Syria began to ease and investors bet on the Federal Reserve maintaining monetary policy loose for longer; this forecast being attributed to Lawrence Summers’ pullout from the race to be the next Chairman of the Federal Reserve.

The dollar has tumbled to 1.9930 against the lira, which has been declining in value over the past few weeks due to the possibility of a United States-led military strike against Syria, along with concerns that the U.S. Fed may taper its asset purchase program soon. 

Summers is perceived by markets as relatively hawkish and his decision could leave Janet Yellen, a well-known policy dove, as front runner for the top job. President Barack Obama has accepted Summers’ withdrawal.

The dollar closed the week at 2.0289 liras on Sept. 13 and began today at 2.0070 liras before falling to its lowest point at 1.9930.

The stock market opened the day with gains reaching above 2 percent. Turkey’s main index, Borsa Istanbul 100, was at 73.373 points as of 10:45 a.m.