Published: 17 Sep at 4 PM Tags: Dollar, America, USA, India, Turkey,
Although the US Dollar has broadly softened since the beginning of the week as a result of current and future Federal Reserve concerns, the Turkish Lira has still posted modest declines against its North American rival.
The Lira experienced only slight fluctuations after the Turkish central bank opted to leave its three main interest rates unaltered.
However, the central bank did adopt a wary stance in terms of fiscal policy adjustment.
In a statement the financial institution said that the ‘committee will maintain the cautious monetary policy stance and implement additional monetary tightening at the appropriate frequency until the medium-term inflation outlook is in line with the medium-term targets.’
At the current Exchange Rate one US Dollar is worth 2.0080 Turkish Lira
’s economic growth is picking up, with the nation recording growth of 4.4 per cent in the second quarter after growth of 2.9 per cent in the first, the central bank remains concerned and has expressed its commitment to keeping borrowing costs low until the economy regains momentum.
If the US Fed decides to taper stimulus by more than the 15 billion Dollars expected, or issues a less dovish statement than markets have prepared themselves for, additional Lira/US Dollar losses are likely.
In other emerging-market currency news, India
’s Rupee recorded its most significant decline against the US Dollar for two weeks during the local session as the Federal Open Market Committee gathered to begin a two-day meeting.
The Rupee weakened to 63.37 against the US Dollar, edging away from the month-high recorded yesterday.
The Indian asset was feeling the pressure as months of easing speculation mount ahead of tomorrow’s announcement.
In response to the Rupee’s movement analyst Amit Agrawal argued that the currency ‘remains at risk on poor data, external developments. We believe that the backdrop for global emerging markets continues to be quite challenging.’
1 US Dollar is currently worth 63.3700 Rupee
Of course, higher-risk assets like the Lira and Rupee are likely to experience significant movement tomorrow in the wake of the Federal Reserve’s ticking time-bomb finally exploding.
As of Tuesday, 17th September 2013, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP USD exchange rate was 1.5906, and GBP INR exchange rate was 100.4512.