Monday, July 4, 2022

Turkish Lira Weakens to Record As Geopolitical Risks Mount By Bloomberg


© Bloomberg. ANKARA, TURKEY – NOVEMBER 25: The S-400 air defence system from Russia is activated for testing at Turkish Air Force’s Murdet Air Base on November 25, 2019 in Ankara, Turkey. Turkey purchased the anti-aircraft weapons system from Russia over the objections of the United States, which has threatened to sanction Turkey and exclude it from its F-35 fighter jet program. The U.S. fears that the F-35, which is designed to evade such anti-aircraft systems, will be compromised if Turkey deploys both. (Photo by Getty Images)

(Bloomberg) — Turkey’s lira depreciated to a record against U.S. dollar, decoupling from other emerging-currencies amid mounting geopolitical risks in the region.

The fell as much as 0.9% to 7.8692 per dollar, extending losses this year to more than 24%, the second-biggest slide in emerging markets after Brazil’s real.

Turkey plans to test Russian-made S-400 missiles in defiance of U.S. complaints, while at the same time opposing Russia in the recent clashes in the Caucasus. It’s also pushing its own agenda in the eastern Mediterranean, putting it at odds with European Union members Greece and Cyprus.

Turkey to Test Russia-Made Missile System That Angered U.S.

“Apart from the ongoing clashes between Armenia and Azerbaijan, the risk that the U.S. may imposes sanctions on Turkey for purchasing the S-400s from Russia has increased,” said Piotr Matys, a London-based strategist at Rabobank. “Testing the S-400s ahead of crucial U.S. presidential elections without knowing whether President Trump, who has an affinity for President Erdogan, will be re-elected is a major source of concerns for already nervous investors.”

Meanwhile, Turkey paid a premium as it sold $2.5 billion of debt to international investors on Tuesday, it’s first foray into global markets since February. The bonds priced at 6.4%, compared with 4.25% for similar-maturity notes issued in February.

©2020 Bloomberg L.P.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link


Please enter your comment!
Please enter your name here



Related Stories