We can say that Turkish lira reached a record low. The euro exchange rate benefited significantly from a weak US dollar on Thursday and rose above the $ 1.16 mark.
In the course of the day, the common currency, the euro, climbed to a daily high of 1.1624 dollars. In US trading, the euro was again traded a little lower at 1.1598 dollars. The European Central Bank had set the reference rate at 1.1602 (Wednesday: 1.1562) dollars. The dollar cost 0.8619 (0.8649) euros.
Traders justified the strength of the euro with a broad weakness of the dollar. The good stock market sentiment that weighed on the dollar as a global reserve currency was mentioned. In the course of trading, US economic data were unable to give the dollar a sustained boost, although economic figures suggest that the US Federal Reserve will tackle the exit from its extremely loose monetary policy this year.
In September, US producer prices rose year-on-year than ever since the survey began in 2010. In addition, the number of initial jobless claims fell more sharply than expected in the past week. In the foreign exchange market, however, rapid measures by the US Federal Reserve are already firmly expected. The minutes of the Fed’s latest interest rate meeting published the previous evening show that the central bank intends to start reducing bond purchases to support the economy this year. The Turkish lira, which continued its slide with a record low against the dollar, was under great pressure. The trigger was that President Recep Tayyip Erdogan dismissed three central bankers overnight. This means that there is less and less reason to hope for a turnaround in Turkish monetary policy, commented foreign exchange expert Antje Praefcke from Commerzbank. “In our opinion, these are not good omens