Dollar rises amid fears of emerging markets
Today, the dollar rises as the market remains concerned about the recent changes in emerging markets.
US Dollar Index-US Dollar indicator, the index that tracks the dollar's strength compared to a basket of other currencies, has increased 0.05% to 95.12 at 1:45 AM ET (05:45 GMT), while the Argentine Peso touched the record low at the second when the President Mauricio Marci vows to use emergency measures to resolve the crisis.
On Monday, Argentina unveiled new tightened measures with the ultimate goal of balancing the budget next year. These measures include new taxes on exports and further reductions in government spending. The MACRI government wanted to accelerate the release of a 50 billion dollar loan from the International Monetary Fund (IMF).
Macri said the level of poverty will increase as inflation increases by more than 30%. The country increased interest rate to 60% by the end of August. "This is not just another crisis. This must be the last time, "he said.
Meanwhile, USD/TRY rates fell 0.5% to 6.6256 after the Turkish Minister of Finance Berat Albayrak said on Monday that there is no risk to domestic banks or foreign debts.
The Turkish Lira has lost about 40% of the value compared to the US dollar this year.
The central bank of Turkey said in a statement on Monday that "recent developments in inflation prospects show significant risks to the price stability... [Currency market] will be adjusted at the 9-month Monetary Policy committee meeting in the latest opinion. "
Emerging markets have been heavily affected by fears that higher US interest rates will pressured countries that have borrowed many dollars in recent years.
The USD/JPY rate rose 0.05% to 111.14, while the AUD/USD rate rose 0.3% to 0.7232.
The USD/CNY rate has dropped 0.3% to 6.8215 when the People's Bank of China (PBOC) establishes the reference exchange rate of the Chinese yuan at 6.8183 compared to a fixed rate on Friday, 6.8347.
US Dollar Index-US Dollar indicator, the index that tracks the dollar's strength compared to a basket of other currencies, has increased 0.05% to 95.12 at 1:45 AM ET (05:45 GMT), while the Argentine Peso touched the record low at the second when the President Mauricio Marci vows to use emergency measures to resolve the crisis.
On Monday, Argentina unveiled new tightened measures with the ultimate goal of balancing the budget next year. These measures include new taxes on exports and further reductions in government spending. The MACRI government wanted to accelerate the release of a 50 billion dollar loan from the International Monetary Fund (IMF).
Macri said the level of poverty will increase as inflation increases by more than 30%. The country increased interest rate to 60% by the end of August. "This is not just another crisis. This must be the last time, "he said.
Meanwhile, USD/TRY rates fell 0.5% to 6.6256 after the Turkish Minister of Finance Berat Albayrak said on Monday that there is no risk to domestic banks or foreign debts.
The Turkish Lira has lost about 40% of the value compared to the US dollar this year.
The central bank of Turkey said in a statement on Monday that "recent developments in inflation prospects show significant risks to the price stability... [Currency market] will be adjusted at the 9-month Monetary Policy committee meeting in the latest opinion. "
Emerging markets have been heavily affected by fears that higher US interest rates will pressured countries that have borrowed many dollars in recent years.
The USD/JPY rate rose 0.05% to 111.14, while the AUD/USD rate rose 0.3% to 0.7232.
The USD/CNY rate has dropped 0.3% to 6.8215 when the People's Bank of China (PBOC) establishes the reference exchange rate of the Chinese yuan at 6.8183 compared to a fixed rate on Friday, 6.8347.
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