Turkish Lira falls to new record low
The Turkish lira today fell to another record low against the dollar amid growing concerns over the economic impact of coronavirus. The TRY has been falling for 5 consecutive days and has now surpassed its 2018 peak.
As well as economic concerns, there are fears over the nation’s cash reserves with reports suggesting the Fed is unwilling to extend a swap line to cushion Ankara’s depleted reserves.
However, Turkey’s Finance Minister has reportedly said that the nation’s reserves were more than adequate.
Traders think otherwise though, as the currency continues to plunge to new lows. It is worth keeping an eye on the USD/TRY as further rises in this pair (meaning more weakness for the TRY) could exacerbate overseas dollar funding worries and have repercussions for other markets, including equities and gold.
Source: TradingView and ThinkMarkets