Dollar reaches highest level in 33 months
Posted by meb at March 5th, 2009
The dollar started another climb against the lira yesterday after last week’s move that carried the dollar to lira rate of exchange to 1.73.
The US currency saw its highest level since June 2006, at TL 1.76 in free market trade.
A euro traded in İstanbul’s free market at TL 2.2 and the sterling at TL 2.5 yesterday during the afternoon hours.
The euro softened on Thursday as investors awaited a policy decision by the European Central Bank, which is widely expected to cut interest rates further to shore up the ailing euro zone economy.
The dollar retained its broad strength in the international markets, as well. It rose against a slew of currencies as underlying worries about financial institutions and a global recession persist, prompting investors to seek refuge in a currency viewed as relatively safer.
It also rose to a fresh four-month high against the yen on worries over a deteriorating economy and deepening political uncertainty in Japan.
Commenting on the dollar’s rise, Yunus Kaya, a research specialist at Gedik Investment Securities Inc., pointed to the continuing demand for the dollar in the international markets as the main cause for the recent drive up. The demand is high in Turkey, too, he noted. “The idea among the Turkish investors that the dip level has not been reached yet is bringing the dollar forth among other investment options,” he said.
Apart from these explanations, he said there is no need to expect the dollar to rise any more. Billions of dollars that will start flowing in the domestic markets by April due to a “wealth amnesty” will probably prevent the dollar from surpassing the TL 1.8 level, he commented.
source: Today’s Zaman
Related posts: