The Euro rose slightly on Wednesday.
At noon, the cost of the common currency was about 1.13 US dollars, a little more than it was in the morning. The European Central Bank set the reference rate on Tuesday afternoon at $1.1295.
Trading between the Euro and the Dollar was largely quiet. The euro received some support from the friendly mood in the stock markets. So the demand for the US dollar was somewhat lower as a reserve currency, from which other currencies mostly benefited.
The Turkish lira is currently developing relatively stable. Currently 12.5 liras owed per dollar and 14.1 liras owed per euro. Thus Turkey’s national currency is trading well above its recent record lows, but remains weak by the longer comparison. The government’s stabilization package aimed at offsetting exchange rate fluctuations continues to affect. Prior to the state’s intervention, the lira was in a sharp decline as investor confidence in the country’s economic and monetary policy was affected.
But experts criticize the measures because they did not address the causes of the lira’s weakness, but did treat the symptoms. The lira’s weakness has one simple reason, according to an analysis by Commerzbank expert Tatha Goss: “inadequate pursuit of the inflation target and inadequate monetary policy.” Rating agency Fitch remains skeptical: The scope, impact and consequences of the government’s program are uncertain, the credit auditor said. Negative real interest rates, uncertain monetary policy and inflationary pressure may lead to more volatility in currency rates.
A few noteworthy economic data is due to be released during the day. In the US, growth figures for the summer quarter are published, but this is just a review of already known numbers. Basically, it is already known that the US economy lost a lot of momentum in the summer. No decisive data is expected from the Eurozone.
/ bgf / jsl / stk
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