Turkey Central Bank Seeks to Repel Short-Term Carry Trade Bets
Turkish policymakers are taking steps to deter so-called 'hot money' flows into the lira, pushing back against one of the world's most lucrative currency bets.
While the central bank has kept a tight rein on the lira market and allowed the currency to slide gradually, traders say market moves have become less predictable lately. On recent Fridays in particular, the lira has weakened three to four times faster than the average pace on other days, according to Bloomberg calculations.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
16 hours ago
- Yahoo
Sterling drops as Israel's strikes on Iran boost safe-haven dollar
LONDON (Reuters) -The pound fell on Friday, in sync with other volatile currencies such as the Australian dollar, after Israel launched a flurry of strikes on Iran, sending investors scurrying into the relative safety of the dollar. Sterling fell almost 0.7% to a low of $1.35225, mirroring the 0.9% declines in the Aussie and New Zealand dollars. The euro meanwhile rose 0.2% against the pound to 85.23 pence. Israel's strikes targeted nuclear facilities, missile factories and military commanders, and Iranian media and witnesses reported explosions including at the country's main uranium enrichment facility. Iran launched about 100 drones towards Israeli territory in retaliation, which Israel is working to intercept, Israeli military spokesman Brigadier General Effie Defrin said. Iran has long maintained that its nuclear-related activity is for peaceful purposes. British Prime Minister Keir Starmer said the strikes were concerning and all parties needed to step back and reduce tensions. "Until the danger of further escalation has passed, safe assets are likely to remain in demand," Commerzbank currency strategist Michael Pfister said. Investors were already on edge this week on lingering concern about the resilience of a U.S.-China trade truce and about the impact of existing tariffs, even those that have been rolled back from April 2's sky-high levels, on the wider economy. The pound has faced a raft of weak UK data on manufacturing activity, employment and economic growth this week. In addition, finance minister Rachel Reeves announced her spending review, which analysts said did little to improve the outlook for growth but raised the chances of possible tax hikes later this year. Traders expect the Bank of England to deliver another quarter-point rate cut in September and another cut at some point by December, which would bring UK interest rates down to around 3.7%, from 4.25% now.
Yahoo
19 hours ago
- Yahoo
India central bank steps in to contain fallout of oil price jump on rupee, traders say
MUMBAI (Reuters) -The Reserve Bank of India is believed to have sold dollars to support the rupee after a surge in oil prices, triggered by Israeli strikes on Iran, put pressure on the currency, three traders told Reuters on Friday. The Indian rupee dropped to 86.20 to the U.S. dollar before recovering to 86.04 on the back of the RBI's intervention. The central bank sold dollars near 86.05, a currency trader said, citing two state-run banks. Sign in to access your portfolio
Wall Street Journal
a day ago
- Wall Street Journal
Dollar Hits Multiyear Lows
The dollar sank to its weakest level in years, losing ground against the euro, Japanese yen and other currencies. The WSJ Dollar Index traded as low as 94.48, the lowest intraday level since July 2023, according to Dow Jones Market Data. That gauge and the U.S. Dollar Index were recently both on pace to settle at their lowest levels in years. The euro surged above $1.16, and was on course for its strongest end-of-day level since October 2021.
