Turkish lira falls on central bank sacking, yen and dollar rise

22.03.2021 - Kulakov Vladimir
Turkish lira falls on central bank sacking, yen and dollar rise

The Turkish lira dropped towards a record low against the dollar after President Erdogan stunned investors by replacing the central bank governor with a critic of high interest rates.

The yen climbed versus the euro, kiwi, and Aussie on speculation that Japanese investors buying lira for its high interest rates will close out their positions.

The Turkish lira traded 11% lower, at 8.0990 against the dollar in Asian trade. At one point, the lira dropped almost 14% to 8.4850, near a record low of 8.5800. 

The yen rose against the euro, the Aussie, and the kiwi, lifted by hopes that Japanese retail investors who lost money on the lira will unwind other cross yen trades.

The dollar steadied at 108.87 on the yen but rose to $1.3823 against the pound. The euro fell to $1.1887.

In onshore trade, the yuan stood at $6.5108 after China maintained its benchmark lending rate for corporate and household loans.

The Aussie dropped to $0.7718, while the kiwi stood at $0.7148.

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