The Turkish lira weakened on Monday morning by as much as 4.2% against the dollar after Sunday’s decision by the Turkish government to immediately suspend all non-immigrant visa services at Turkish consulates and embassies in the US.
Turkey’s tit-for-tat decision came just hours after the US announced the same thing.
Washington said on Sunday that it would be suspending all non-immigrant visa services to Turks in light of “recent events,” which have forced the Trump administration to “reassess the commitment” of Turkey to the security of US diplomatic offices and personnel within its borders.
Turkish Lira 1 Week charts
You know a country has a strange sort of democracy when despite a coup attempt over the weekend, the currency is down less than 1 percent versus the US Dollar. In fact the Turkish Lira is even up for the week versus the Japanese Yen!
Please note: the above quoted exchange rates, updated Mon Jul 18, are market mid-rates that will have a commission applied by your typical high street bank.
Only one story dominated markets yesterday and it wasn’t the pontificating of Monetary Policy Committee members on interest rates and the state of the UK economy. The news that a Russian jet had been downed by Turkish forces set markets on edge and hyped up fears that the mishmash of coalition forces, the Free Syrian Army and the Russians are not able to bring about a sufficient level of coordinated violence against ISIS with a disparate command and control structure.
Two charts that show the woe for emerging market currencies despite a pause in the devaluation of the renminbi, the cause of turmoil across global currencies.
The implications — among them a more troubled Chinese economy than previously thought, deflationary strains in western countries and falling equity stocks — are being felt mostly by China’s regional trading neighbours and other emerging markets.