Most emerging-market currencies are losing ground as the dollar remains near a 16-month high, with the Turkish pound hitting new all-time lows and the Russian ruble under pressure amid growing geopolitical concerns triggered by the migrant crisis of the European Union.
The ruble lost 0.4 percent after US officials expressed concern about “unusual Russian military activity” near the border with Ukraine.
Countries bordering Belarus warned on Thursday that the immigration crisis could escalate into a military confrontation, with Ukraine announcing the deployment of thousands of troops to bolster its border units.
Belarussian President Alexander Lukashenko has warned the EU against retaliation. if Europe moves to new sanctions.
Meanwhile, the Turkish lira was earlier found to fall 0.8% to a new low of 9.9843, approaching the psychological level of 10 pounds / dollar. At this time, the Turkish currency is moving at 9.9237 / dollar.
The inflation rally in Turkey and the estimates that the country’s central bank will proceed with a further reduction of its interest rates by 100 basis points lead the Turkish currency to negative territory for the fourth consecutive meeting. The pound goes for weekly losses of more than 2%.
The key interest rate has already fallen by 300 basis points since September, to 16% in order to boost the economy as requested by President Erdogan. The pound, however, has lost 25% of its value this year.
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