Turmoil in Global Markets: Fluctuations Continue Amid Political Uncertainties and Rate Hike Speculations
The question on every investor’s mind today is the state of the dollar exchange rate. How much is the dollar worth against the euro, and what are the latest figures? Here’s the current situation in the interbank forex market amidst ongoing global sales pressure…
The day began with the Dollar/TL hovering around 32.52, but closed with a modest 0.08% decrease, trading at around 32.34. Meanwhile, the Euro/TL exchange rate stood at 34.72.
Political outcomes in Europe and expectations of global interest rate hikes have fueled a flight from risky assets. This sentiment has triggered volatile movements in currency markets, particularly among emerging market currencies.
The Turkish Lira had maintained a relatively stable trajectory against the dollar throughout April and May. Analysts note that the Lira’s response to inflows and outflows of capital mirrors that of other emerging market currencies, indicating a healthier market dynamic.
Concerns over the political future of the European Union have intensified following significant gains made by far-right parties in the European Parliament and France’s decision to hold early elections.
Meanwhile, Turkiye’s Central Bank continues to amass reserves at a record pace. According to bankers’ calculations, the Central Bank’s net reserves, excluding swaps, surged to $6 billion last week.
Excluding swaps, net reserves turned positive for the first time in four years during the week ending May 31, reaching $1.5 billion. Total reserves saw a $2.5 billion increase, totaling $146 billion.
Source: NTV / Prepared by Irem Yildiz