Latest reports indicate that Turkish Lira has dropped to record lows against the dollar and Euro.
The impact of exchange rates on various world economies.
Latest reports indicate that Turkish Lira has dropped to record lows against the dollar and Euro. Currently, the lira is trading at 3.50 percent per dollar which is said to be just an extension of their downward trajectory in the financial markets which stands at 17%. This has in, turn affected the country’s import trades as well as tourism sector. This decline has added pressure on the nation's central to step in to curtail the losses despite that fact that its surprise interest rates increase last week have failed the support the dropping lira.
Japanese Yen has risen more than 7% in November despite fears that US president Donald Trump will pursue price restoration policies. Early November Dollars strengths became exceptionally stronger against Yen something that had not been witnessed in the last two decades. According to some economics analysts, the dollar is likely to appreciate and that Yen is like to be highly affected such appreciation. The dollar appreciated by 0.4 percent to 112.38 yen just in last week.
For close to three months now Indian rupee has been gaining on US dollar with the current standing of 68.47 up from 68.47 translating to 0.4% positive deviation.
This growth has been attributed to the suspected intervention of the Reserve Bank of India in the currency market and some bit of goodwill from their Asian counterparts.
Some of the banks that are owned by Indian government had been selling dollars after the slump of Rupee was recorded something that does not go down well with the privately owned financial institutions. However, some analyst project that the local currency will hit 70-72 per dollar in the near term. Though that expectation is dependent on the decision of The Reserve Bank of India to preserve its foreign exchange reserves.
Earlier this year a question as to whether the US Dollar can gain momentum against Singapore’s currency was put across by several financial market analysts. It appears that the answer to that question has turned out to be positive since Singapore dollar now goes at 0.70447 US dollars. Rise and drop of the Singapore currencies are partly contributed by shock in their systems and other political worries. If Singapore dollar had stayed too strong then the country would have lost much of its competitiveness against its neighbouring countries as goods and services would be more expensive.
In the past two years, it has been a good ride for the Indonesian Rupiah since its stability against US dollar and other competitive currencies has been sustainable. More distinct strength has been seen against US dollar which is viewed to have been going the opposite direction. This kind of atmosphere is very important for any other investor that is holding assets dominated in the rupiah zone. Presently one US Dollar trades at 13502.5000 Indonesian Rupiah.
One of the currencies that were affected by the Brexit issue was the pound. Though it was had it, it is now struggling to make it back to the financial markets. It is said that the pound fell to its lowest against the dollar since 1985 and since Malaysia is known as business and tourism destination. Ringgit now trades at 5.5586 against the pound. It’s feared that if the currency continue to slide sectors such as education and other economic investments