Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Lira Extends Drop in Sign of Further Turkish-Market Turmoil

Published 08/10/2020, 02:49 AM
Updated 08/10/2020, 03:18 AM
© Reuters.  Lira Extends Drop in Sign of Further Turkish-Market Turmoil

© Reuters. Lira Extends Drop in Sign of Further Turkish-Market Turmoil

(Bloomberg) --

It’s shaping up to be another rough day for Turkish markets.

The lira, which sank to a record low last week as the central bank abandoned some of the policies that had underpinned it for much of this year, extended its declines Monday, dropping as much as 1.7% to trade as low as 7.4080 per dollar. The premium investors demand to buy Turkish dollar bonds instead of U.S. Treasuries increased 2 basis points to 683 basis points, according to a JPMorgan Chase (NYSE:JPM) & Co. index.

Read: Turkey Eases Asset Ratio Rule for Banks to Contain Loan Growth

To add to an increasingly nervous-looking backdrop, Turkey began gunnery exercises Monday to the east and south of the Greek islands of Rhodes and Kastellorizo, potentially exacerbating tensions with Greece over maritime rights in the region.

The Borsa Istanbul introduced an index-linked circuit-breaker system following the week-long market turmoil Friday. The benchmark Borsa Istanbul 100 index tumbled the most since March last week, losing 9.5% in dollar terms.

©2020 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.