The Turkish lira plunges to the lowest level of more than two months. And links are attached to him

Pictet Asset Management: Investors worry about the consequences of a further reduction in interest rates

Last update: Tuesday 26 Zul-Hijjah 1440 AH – August 27, 2019 KSA 6:12 pm – GMT 3:12 pm
Publication date: Tuesday 26 Zul-Hijjah 1440 AH – August 27, 2019 KSA 12:48 – GMT 09:48

SOURCE: Reuters

Dollar bonds issued by the Turkish government fell on Tuesday. The issue of 2030 reached its lowest level in six weeks, in a context of continued pressure on the lira.

According to Tradeweb data, the 2030 and 2034 issues both fell by more than one cent in dollars.

The lira has dropped about 0.5% against the dollar today, continuing its losses after falling more than 1% on Monday, its lowest level since June 19th under the weight of worries. aroused by the impact of the Sino-US trade war and tensions in northwestern Syria.

"Investors are wary of the impact of interest rate cuts on the lira, as the currency will be the first macroeconomic indicator to react to this change," said Nikolai Markov, an economist at Pictet Asset Management.

In a similar context, the Turkish lira lost about 0.5% against the dollar on Tuesday, its lowest level since June 19 in the face of lingering worries about the impact of the Sino-US trade war and the tensions in northwestern Syria.

The currency reached 5.8530 lira for a dollar at 07:10 GMT, against 5.8250 at the close on Monday.