United Nations and Ethiopia reach aid pact for war-hit Tigray    Arsenal's Arteta expects difficult January transfer window    Wolves' Jimenez recovering well from surgery on fractured skull    Chelsea win Group E as Giroud scores 4 goals vs Sevilla    Khartoum's benefits from GERD cannot be achieved without signature of a binding legal agreement, says Sudan's irrigation minister    In Photos: Egypt's Sisi inspects a number of locally-manufactured multi-use vehicle models    Egypt's stock market slightly up, main index falls after Juhayna head arrest    42nd Cairo International Film Festival opens today amid strict precautionary measures    Not so Merry Christmas looms for coronavirus-hit Europe    Asian stocks mixed on Wednesday after Wall Street surged overnight    Armed bank robbers storm another Brazilian town, battle police in streets    UK approves Pfizer-BioNTech Coronavirus vaccine, first in the world    Deadline for reconciliation requests in building violations pushed back till end of 2020: Egypt cabinet    Egypt confirms 392 new coronavirus cases, 16 deaths on Tuesday    Egypt's capital inflows fell by half in FY2019/20, CBE    Iran's president rejects bill that would boost enrichment    Egyptian expats to print ballots starting Thursday for 2nd stage of parliamentary run-offs    In '76 Days,' a documentary portrait of lockdown in Wuhan    Eni reaches agreements with Egypt, Naturgy to restart operations at gas plant in Damietta    Gana Hena play at Al-Ghad Theatre is a must go    A final battle    Free Devastation    France aiming for broader COVID-19 vaccination campaign in spring: Macron    Egypt reports 370 new coronavirus cases, 14 deaths on Monday    Brexit unresolved, as EU, UK say big differences remain    Cairo International Book Fair suspended for five months over coronavirus concerns    US will reduce number of its troop in Iraq, Afghanistan    Asia forms world's biggest trade bloc, a China-backed group excluding U.S    Egypt unveils largest archaeological discovery in 2020 with over 100 intact sarcophagi    Trump says won't blame Egypt for being ‘upset' over GERD dispute with Ethiopia    1st stage of Egypt's parliamentary elections kicks off on Saturday    Global Finance: Egypt's Tarek Amer among the world's top 20 central bank governors    Legend footballer Lionel Messi says he is forced to stay with Barcelona    Egypt, Ethiopia, Sudan to resume Nile dam talks today    Iraqi conglomerate eyes developing land that housed Mubarak-era ruling party HQ    Legend Messi officially wants to leave Barcelona, hands transfer request    The Facebook Preacher's Search for Fame, and Egypt's Economy    Egypt calls on UNSC to address oil spill risks off Yemen coast    Egypt economically strong in face of COVID-19, reforms ongoing: International Cooperation Minister    Arafa Holding reports $144,000 COVID-19-related losses in April    Egypt's efforts in Libya to activate free will of Libyan people: Al-Sisi    Hyksos campaigns were internal takeover, not foreign invaders: study    COVID-19 affects Egypt sporting clubs    COVID-19 will soon turn to seasonal like swine flu: Presidential Health Advisor    ‘Egypt's Support' coalition convenes to discuss its Senate election list    Robbery attempt leads to discovery of Ptolemaic monuments in Qena    Flouting international guidance, Ethiopia unilaterally starts filling its Nile dam    Zaha speaks out after online racial abuse    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





Turkish lira leads EMEA FX losses as geopolitics, virus spike weighs
Published in Ahram Online on 26 - 10 - 2020

Turkey's lira hit a record low on Monday on growing concerns over policy and geopolitical issues, with other emerging markets in Europe, Middle East and Africa also retreating as a second wave of coronavirus cases culled demand for risk-linked assets.
The lira sank 1.2% to breach 8 to the dollar, weighed by renewed fighting in the Nagorno-Karabakh region that threatened to upset a new U.S.-brokered ceasefire and tensions between Ankara and Athens over a disputed area in the eastern Mediterranean.
The currency had hit a record low last week after the Turkish central bank's surprise move to hold interest rates raised concerns over how it would combat spiking inflation and dwindling foreign exchange reserves.
"The collapse in the lira has been expected for a very long-time given poor fundamentals," Sebastien Galy, macro strategist at Nordea Asset Management, wrote in a note.
"It is a stark reminder of the great dispersion in performance in emerging markets from China on one side to the default of Zambia or woes of Turkey and South Africa on the other side."
Chinese markets, up 14.5% this year, were among the first in the emerging market space to recoup from the initial shock of the COVID-19 pandemic, while Turkey and South Africa are still struggling to put their economies back on track.
A spike in coronavirus infections in the United States and Europe pushed the MSCI's index of emerging market stocks down 0.4% on Monday, with major bourses in Asia also falling.
Turkish stocks fell about 1.2%, underperforming their EMEA peers and Turkish sovereign bonds also declined in tandem with the lira.
Rising cases in Czech Republic and Hungary also pressured central European stocks and currencies.
South Africa's rand fell 0.6% to the dollar, while stocks also retreated as investors awaited the government's medium-term budget policy statement on Wednesday.
Russia's rouble fell 0.4%. The country's central bank on Friday left its key rate unchanged and promised more daily foreign currency selling.
Elsewhere, ratings agency S&P slashed Zambia's credit rating to "selective default" after the government missed an interest payment last week and announced it would suspend debt service to external commercial creditors.


Clic here to read the story from its source.