The dollar is declining… and the historic collapse of the Turkish lira

The Turkish lira is falling to a historic level against the dollar

The dollar fell slightly on Tuesday, against a basket of major currencies, but remained close to its highest level in two months, after the agreement on the US debt ceiling increased risk appetite, although the approval of the agreement in Congress may face difficulties.

The dollar index, which measures the US currency against six major currencies, fell 0.02 percent to 104.28 points, near the two-month high of 104.42 points it touched on Friday. The index is expected to end the month up by 2.5 percent.

A handful of conservative right-wing Republican lawmakers said on Monday they would oppose any deal to raise the US debt ceiling, which currently stands at $31.4 trillion.

The opposition highlights the hurdles that Democratic President Joe Biden and Republican House Speaker Kevin McCarthy will face in getting the deal through the Republican-controlled House and Democratic-controlled Senate before the country reaches the debt limit, likely next Monday.

Historical losses for the Turkish lira… and pessimistic expectations

The Turkish lira fell to a new record low of 20.3 against the dollar, continuing the losses incurred since President Recep Tayyip Erdogan’s victory in the re-run of the presidential elections that took place on Sunday.

And the American Wells Fargo Bank had expected the Turkish lira to decline to 23 lira this year and 25 lira early next year following Erdogan’s victory in the presidential elections, and Morgan Stanley warned that the Turkish lira may continue its decline to 26 against the dollar soon, and it may reach 28 By the end of the year, after Erdogan’s victory, who may keep interest rates at low levels, which will put pressure on the Turkish currency

major currencies

The euro rose 0.01% to $1.0706, and the pound sterling rose in the latest trading session to $1.2356, up 0.04% over the course of the day.

And the Japanese yen rose 0.11 percent to 140.31 per dollar, after touching a six-month low of 140.91 yen per dollar on Monday.

The Australian dollar fell 0.31% to $0.652, and the New Zealand dollar fell 0.15% to $0.604.

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2023-05-30 07:52:30

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