The Dollar Remains almost Unchanged, Turkish Lira Soared

Let us track the changes in the market. Investors keep an eye on the rapidly deteriorating relationship between Beijing and Washington. Washington made sanctions against Hong Kong officials after that China imposed sanctions on eleven United States citizens, including Republican lawmakers.

Steven Mnuchin, the United States Treasury Secretary, said that companies from China and other countries that do not comply with accounting standards would be delisted from United States stock exchanges as of the end of 2021.

There were concerns about Turkey’s depleting foreign reserves. Thus, the Turkish lira stayed near a record low hit on Friday. It led to expectations that the central bank may take more decisive actions to stem its fall.

Just above Friday’s record low of 7.365, the lira was at 7.320 per Dollar.

Dollar and Others

With more wild swings in the Turkish currency forecasted, implied volatilities calculated from option prices have soared, with three-month volatility rising to 26.5%. Its highest since April last year.

Thus, the Turkish lira was near a record low. The Dollar bounced back after seeing weeks of decline. Investors stick with the hope of more talks concerning the stimulus.

There were seven weeks of an almost relentless fall. That is because investors clung to hopes of a bi-partisan deal of stimulus in Washington. Moreover, bond yields of the United States rebounded from multi-month lows. Thus, the Dollar held overnight gains on Tuesday.

The United States dollar index jumped back to 93.597 from Friday’s two-year low of 92.495. Having fallen for seven straight weeks, traders said that the currency was due for a short-term corrective bounce.

The common currency changed hands at $1.1741, having eased 0.5% in the previous trade. The United States dollar remained almost unchanged at 105.96 yen.

Minori Uchida, a chief currency analyst works at MUFG Bank. Uchida said that the fall of the Dollar appears to have come to a halt for now.

That is leading news of the global market and economy.