INSUBCONTINENT EXCLUSIVE:
liquidity, but it remained under selling pressure and its meltdown continued to rattle global markets.
The currency has lost more than 40
calls for lower interest rates, and worsening ties with the United States.
On Friday the slide turned into a crash: the lira dropped as much
night hit Asian shares and drove global demand for safe currencies including the dollar, Swiss franc and yen
rates to curb doubledigit inflation and cool an overheated economy
when it held interest rates despite the tumbling lira, announced measures on liquidity and reserves after Finance Minister Berat Albayrak
Monday because needs were low.
They said that could be the first step toward tightening policy via an interest rate corridor, an instrument
used in previous years, rather than increasing the benchmark rate
The reserve requirement moves will free up 10 billion lira, $6 billion, and $3 billion equivalent of gold liquidity in the financial system,
And the rupee is feeling it.
This time, it's the US versus Turkey
On Monday, the local unit fell so much that the spectre of 70 looked menacingly real.
The trigger is a plunging lira, which is sending the
EM currencies sharply lower
A growing diplomatic rift between the US and Turkey is believed to have started the fire.
There are many sides to this rupee story
Let's peel them off one by one.What a fall!13 Aug, 2018 A sense of fear has gripped the forex market
At one stage, the domestic unit crossed 69.80
The local unit lost more than 1% to the greenback, prompting the Reserve Bank of India to intervene.Turkish headwinds13 Aug, 2018The
spillover effects are building
US President has raised tariffs on imports from Turkey over a political issue
He has threatened to impose more sanctions on Turkey too
There are worries that Turkish President is gaining more control of the economy
All these are playing havoc.Writing on the wall13 Aug, 2018The rupee had showed signs of weakness in the Singapore non-deliverable forwards
(NDF) market before the domestic currency market opened for trading back in India
NDF is the offshore derivative market, where speculators and investors cut over-the-counter deals.Running for cover13 Aug, 2018The dollar
index, which measures the unit against major global currencies, gained about 1.5 per cent in the past 3-4 trading sessions
This shows that international investors are seeking safety of US-backed assets among worsening global trade war worries.
