Home / Business / That’s why the dollar rises against the euro and the Swiss franc – new record lows for the Turkish lira | 10/08/20

That’s why the dollar rises against the euro and the Swiss franc – new record lows for the Turkish lira | 10/08/20



The euro fell slightly against the dollar on Monday.

The European single currency, the euro, traded at $ 1.1769 in the afternoon. In the morning, it had been quoted briefly at $ 1.18. At 1.0765, the euro barely changed against the franc.

The dollar also strengthened slightly against the Swiss franc. The USD / CHF exchange rate is currently trading at 0.9177 francs after falling to 0.9121 on Monday night.

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US President Donald Trump’s decision to extend existing support measures in the Corona crisis by decree would have supported the dollar, writes Commerzbank exchange rate expert Thu Lan Nguyen. Although the support is sometimes less generous than before, a sudden stop to the financial support has been prevented. “A little stimulus is better than none,”

; says Nguyen. “At least the market seems to see it that way, which is why the US dollar is moderately stronger.”

Tensions between the United States and China caused uncertainty. Beijing has announced sanctions against US politicians in response to US sanctions in the dispute over the restriction of Hong Kong’s autonomy. Canada has also announced retaliatory tariffs against the United States. Strong exporting countries such as Germany suffer from trade disputes.

At the same time, the decline in the Turkish currency continues. After the Turkish lira had already fallen in low last week, the exchange rate marked new record lows against the US dollar and the euro at the beginning of the week. Market observers justified the current weakness of the Turkish currency with new tensions between Turkey and Greece in the dispute over natural gas in the eastern Mediterranean.

For some time, the lira has been affected by the monetary policy of the Turkish central bank. Despite relatively high inflation with an annual interest rate of around 12 per cent recently, the central bank had lowered interest rates several times to get the economy going.

For other major currencies, the ECB set the euro reference rates at 0.90155 (0.90373) British Pounds and 124.74 (124.91) Japanese Yen.

The troy ounce of gold (31.1 grams) traded in London in the afternoon at 2046 dollars. That was about $ 10 more than the day before.

/ JSL / han / TT

FRANKFURT (awp international)

Image Source: Keystone, Lisa S. / Shutterstock.com


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