Turkey fears dent euro to 13-month low versus dollar

Markets 8/10/2018, 7:42 AM
Turkey fears dent euro to 13-month low versus dollar

The continued strengthening of the dollar amid investors' switch to safe-haven assets due to the newest risks to global trade helped push the euro down on Friday. The joint currency took a hit, taking it to $1.14378, the weakest point since July 17 of last year. The fall was exacerbated after reports from sources with direct knowledge of the matter that the European Central Bank is worried about the exposure of major lenders to the struggling economy of Turkey.

BBVA, UniCredit and BNP Paribas are said to be seen as the most vulnerable as the Turkish lira is scrambling for bids, showing consecutive record lows. Central bankers are apparently expressing concern about the possibility of massive credit defaults of borrowers who have loans in foreign currency. The three banks also have substantial stakes in Garanti Bank, Yapi Kredi and TEB, respectively.

The euro was 0.55% down at 7:39 am CET, buying $1.1464. It dropped 0.43 to £0.895. The currency of 19 Eurozone countries was down 0.7% at ¥127.154, after touching ¥126.916, the weakest mark since June 19. The exchange rate versus the Swiss franc fell 0.28% to 1.14226. The session low of 1.14019 was last seen on May 29.

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Share:

EUR/USD-0.01%

1.1578
Chart for: EUR/USD Spot

EUR/GBP-0.12%

0.8793
Chart for: EUR/GBP Spot

EUR/JPY+0.25%

129.7465
Chart for: EUR/JPY Spot

EUR/CHF+0.19%

1.1451
Chart for: EUR/CHF Spot