Further comments by Turkish president Erdogan
- Focus on the big picture instead
- Increasing production, exports, employment is the best response
In other words, he doesn't seem to care that the lira is heading for a more than 10% drop against the dollar today.
As mentioned earlier, watch out for potential spillover effects from the lira's decline. European stocks are being hammered as banking stocks continue to fall in tandem with the lira. The DAX and Italy's FTSE is down by almost 2% now.
It's like the wild, wild west out there for the lira. USD/TRY popped to 6.24 before falling back to 6.04 in a jiffy. The pair is now trading around 6.05-06 currently. I reckon speculators are more cautious about their profit levels this time around after having seen the pair reach 6.30 earlier on before falling back to 5.90 levels.
