The Turkish lira hit a new record low against the dollar yesterday, as investors assess the repercussions of a conflict in the Caucasus and a new medium-term economic program announced by Barat Albayrak, Minister of Finance.
According to “Reuters”, the pound reached a record low of 7.8450 against the dollar, to retreat from a close of 7.81 yesterday. The lira is down about 24 percent since the beginning of this year, due to concerns about the depletion of Turkey’s foreign exchange reserves and negative interest rates.
In addition, the US dollar rose yesterday to remain close to its highest level in two months, while markets await the first debate between the candidates in the US presidential election, amid signs of progress in US financial stimulus talks, and economic data including inflation in Germany.
After it recorded the largest weekly gain since early April last week, and as markets turned to caution and search for safer assets, the dollar erased part of yesterday’s losses, and resumed gains yesterday before a debate between President Donald Trump and his Democratic rival, Joe Biden.
By 07:23 GMT, the dollar was at 94.265 against a basket of currencies, up 0.1 percent. The index stabilized during a quiet Asian session, but rose as markets opened in Europe.
Stock markets fell, while the riskier currencies rose, as the New Zealand dollar settled at 0.656 against its US counterpart, but the Australian dollar rose 0.2 percent to 0.70845.
The Japanese currency was stable at 105.58 yen to the dollar by 07:42 GMT.
The euro rose 0.1 percent against the greenback, to $ 1.16745.
The Swiss franc was also stable against the euro at 1.0786 by 07:42 GMT.
In addition, gold prices stabilized yesterday, as there was little change in the yellow metal in the spot market, and settled at $ 1880.01 an ounce by 05:17 GMT. In the previous session, gold rose 1.1 percent, its biggest daily gain since late August.
And gold rose in futures trading in the United States 0.2 percent to 1885.50 dollars an ounce.
A weak dollar cuts the cost of gold to holders of other currencies.
Hu Wei Li, economist at Oo Bank, said. C. B. C, “The dollar’s decline helped gold, as the link between them remains relatively strong,” indicating the possibility of further fiscal stimulus in the United States.
He added, “If this bill is approved before the November elections, I think that will contribute to the appetite for risk. Gold may rise further thanks to the weak dollar and growing inflation expectations.”
As for the other precious metals, silver fell 1 percent to $ 23.49 an ounce, platinum lost 0.3 percent to $ 876.47, while palladium gained 0.4 percent to $ 2,263.97.
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