Emerging market currencies on Monday were hit by the turmoil in the financial markets due to the Turkish monetary crisis, which pushed investors to safe haven currencies, including the dollar, the yen and the Swiss franc.
The lira plummeted to a record low against the dollar overnight, with USD / TRY at 7.0303, before settling at 6.8434, with a rebound of 6.87% on the day.
The lira reduced losses when the Turkish central bank promised to provide liquidity and cut foreign exchange and foreign exchange reserves for Turkish banks.
The worsening of the trade clash with the United States has brought down the lira by more than 40% this year, losing a fifth of its value against the dollar only last week.
Fears are also weighing on the growing control of President Tayyip Erdogan on monetary policy and the economy.
The selloff sparked investors 'fear of the companies' exposure to the currency and the Turkish economy. The European Central Bank warned Friday that many euro-area banks could be exposed to the sharp decline of the Turkish lira.
The move away from riskier assets has encouraged the increase of the greenback as a safe haven, weighing on emerging market currencies.
The South African rand drops to a two-year low against the dollar, with USD / ZAR at 15.4645 in overnight trading, before settling at 14.4929.
The Russian ruble touches the minimum since mid-April 2016 against the dollar, due to the fall in the price of crude oil and the fear of the impact of a new series of US sanctions.
The Indian rupee marks a historic low against the greenback, with USD / INR at 69.79.
Reuters reported that the Reserve Bank of India stepped in to reduce volatility overnight.
The US dollar index, which replicates the trend of the greenback against a basket of six other major currencies, stands at close to a maximum of 14 months at 96.30, after a surge of 1.33% last week .
The lira plummeted to a record low against the dollar overnight, with USD / TRY at 7.0303, before settling at 6.8434, with a rebound of 6.87% on the day.
The lira reduced losses when the Turkish central bank promised to provide liquidity and cut foreign exchange and foreign exchange reserves for Turkish banks.
The worsening of the trade clash with the United States has brought down the lira by more than 40% this year, losing a fifth of its value against the dollar only last week.
Fears are also weighing on the growing control of President Tayyip Erdogan on monetary policy and the economy.
The selloff sparked investors 'fear of the companies' exposure to the currency and the Turkish economy. The European Central Bank warned Friday that many euro-area banks could be exposed to the sharp decline of the Turkish lira.
The move away from riskier assets has encouraged the increase of the greenback as a safe haven, weighing on emerging market currencies.
The South African rand drops to a two-year low against the dollar, with USD / ZAR at 15.4645 in overnight trading, before settling at 14.4929.
The Russian ruble touches the minimum since mid-April 2016 against the dollar, due to the fall in the price of crude oil and the fear of the impact of a new series of US sanctions.
The Indian rupee marks a historic low against the greenback, with USD / INR at 69.79.
Reuters reported that the Reserve Bank of India stepped in to reduce volatility overnight.
The US dollar index, which replicates the trend of the greenback against a basket of six other major currencies, stands at close to a maximum of 14 months at 96.30, after a surge of 1.33% last week .
