YTL eases 0.37 pct due to sell-offs in emerging markets
Posted by meb at September 5th, 2008
Turkey’s lira eased 0.37 percent to 1.2345 against the dollar on Friday due to the continued effects of a firmer dollar as investors moved to extend sell-offs in emerging market currencies.
The currency closed at 1.2180 on Thursday. “It’s a general emerging market sell-off. South Africa, Hungary, Brazil, we’re all being sold off because there is a continued inclination to buy the dollar,” Reuters quoted Emir Baruh of Finansbank as saying.
The currency has lost some 4.6 percent this week due to a strengthening dollar and lower investor sentiment for emerging market currencies. The lira slipped on Thursday after the Central Bank said it would consider interest rate cuts starting this month following lower-than expected August inflation.
The dollar struck a near 11-month high versus the euro on Friday on speculation a credit-market slump will push European economies into recession and a slumping industrial output in Germany, Europe’s biggest economy, traders said.
The euro fell to 1.4196 dollars in midday London trade — the lowest level since October 24, 2007.
The currency headed for its biggest weekly decline versus the yen in more than a year after European Central Bank President Jean-Claude Trichet said on Thursday that the economy was weak and Luxembourg Finance Minister Jean-Claude Juncker said the euro was overvalued.
“This is a global recession story,” Toru Umemoto, chief currency analyst in Tokyo at Barclays Capital, told Bloomberg on Friday. “We’re seeing a reversal of what’s been happening over the past two years. Now the dollar and the yen are benefiting as risk appetite is on the decline.”
The benchmark bond April 14 of Turkey, 2010 yield rose to 19.03 percent after touching 19.13 percent on Thursday.
The main Istanbul stock exchange index closed the first trading session 1.11 percent down at 39,115 points, underperforming global emerging markets.
source: Hurriyet daily
Related posts: