Turkish Lira weakens to new low against dollar
REUTERS PhotoThe Turkish Lira weakened to a new record low, extending this year’s losses to 12 percent, underperforming most of its emerging market rivals against a surging U.S. currency.
The lira saw 2.6540 against the U.S. dollar on the morning of April 13, dropping from 2.6280 late on April 10.
These new lows mainly resulted from the strengthening trend in the dollar on bets that the U.S. Federal Reserve will raise interest rates from their historic lows in the coming months, according to analysts.
However, the lira has recently been one of the worst performers in emerging markets, ahead of the upcoming June general elections.
U.S. Fed official Jeffrey Lacker on April 10 repeated his call for the Fed to consider hiking interest rates in June, saying there was no shame in making them lower again if economic data demanded it.
South Africa’s rand also weakened the most since March on April 13 upon the strong Fed signals for the coming rate hike. The yuan, meanwhile, weakened the most in a month after China’s export figures shrank 14.6 percent in March, fueling speculation that Chinese policy makers will favor a weaker currency and pursue measures to shore up economic growth.
The euro also tumbled back towards $1.05 on April 13, hitting its weakest in four weeks as the dollar’s resurgence continued.