Turkish Lira Slumps on US Visa Row

The Turkish lira dropped some 5% at the Asian open today after the US suspended all non-immigrant visa services in its Turkish consulates and Turkey responded as relations deteriorated.

Although Thomson Reuters has the official high at 3.7694, multiple sources report trading in USD/TRY above 3.80, with some reporting trades at 3.85 and 3.88. The market had opened at 3.6150.

The dollar rose against the lira immediately markets opened to 3.6470, however things settled down and a slow but steady uptrend emerged, sending the pair to 3.6680. Some three hours after the market opened, however a sharp spike sent the pair above 3.80 in the matter of a few minutes.

Sources report the market functioned well with good liquidity and reasonable volumes and ticket sizes being executed – spreads were naturally wider but a two-way price seems to have been available for much of the Australasian morning.

Profit taking cut in at the highs and the market reversed towards 3.70 – at the time of writing it last traded at 3.7185.

Colin_lambert@profit-loss.com

Twitter @lamboPnL

Twitter @Profit_and_Loss

Colin Lambert

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