Foreign exchange: Euro at 1.13 US dollars – Lira stable despite criticism from experts
Different currencies. © alfexe / iStock / Getty Images Plus / Getty Images
FRANKFURT (dpa-AFX) – The euro
Trading between the euro and the dollar was largely calm. The euro received some support from the friendly mood on the stock markets. The US dollar was therefore somewhat less in demand as a reserve currency, from which other currencies mostly benefited.
The Turkish lira is currently developing in a relatively stable manner. Currently, 12.5 lira are due for one dollar, 14.1 lira must be paid for one euro. The national currency of Turkey is thus trading well above its recently marked record lows, but in a longer comparison it remains weak. The government’s stabilization package, which aims to level out exchange rate fluctuations, is still having an impact. Before the state intervention, the lira had been in a drastic decline as investor confidence in the country’s economic and monetary policy suffered.
However, experts criticize the measures because they did not address the causes of the lira weakness, but rather cured symptoms. The weakness of the lira has a single and simple cause, according to an analysis by Commerzbank expert Tatha Ghose: “Inadequate pursuit of the inflation target and inadequate monetary policy.” The rating agency Fitch also remains skeptical: the scope, impact and consequences of the government program are uncertain, said the credit checkers. Negative real interest rates, an uncertain monetary policy and inflationary pressure could lead to further currency fluctuations.
Only a few noteworthy economic data are due for publication during the course of the day. In the USA, growth figures are published for the summer quarter, but these are only a revision of already known figures. Basically, it is already known that the US economy lost significant momentum in the summer. No decisive data are expected from the euro zone./bgf/jsl/stk
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