- Title: Turkish lira tumbles against dollar as Trump wins U.S. election
- Date: 9th November 2016
- Summary: ANKARA, TURKEY (NOVEMBER 9, 2016) (REUTERS) EXTERIORS OF CURRENCY EXCHANGE OFFICE NEON SIGN FOR EXCHANGE OFFICE PEOPLE EXCHANGING MONEY BOARD SHOWING CURRENCY EXCHANGE RATES ISTANBUL, TURKEY (NOVEMBER 9, 2016) (REUTERS) RESEARCH DIRECTOR AT IS INVESTMENT, SERHAT GURLEYEN, WALKING IN OFFICE (SOUNDBITE) (English) RESEARCH DIRECTOR AT IS INVESTMENT, SERHAT GURLEYEN, SAYING: "It is not the end of the world. Usually markets first deny the news and then they become angry about it, and then they admit it and they accept it. They try to see the good side of the picture." ANKARA, TURKEY (NOVEMBER 9, 2016) (REUTERS) VARIOUS OF WOMAN COUNTING U.S. DOLLARS ISTANBUL, TURKEY (NOVEMBER 9, 2016) (REUTERS) (SOUNDBITE) (English) RESEARCH DIRECTOR AT IS INVESTMENT, SERHAT GURLEYEN, SAYING: "Probably FED will be less aggressive in increasing the rates and the U.S. dollar will not be so strong. It also means 10-year U.S. bond will not be as high as expected. And it is good news for Turkey because Turkey needs to borrow from global markets. That is why we are less worried about U.S. result." VARIOUS OF TURKISH LIRAS BEING COUNTED IN MONEY COUNTER WOMEN EXCHANGING MONEY AT COUNTER
- Embargoed: 24th November 2016 09:38
- Keywords: Turkey USA election Donald Trump Presidency markets currency
- Location: ISTANBUL AND ANKARA, TURKEY
- City: ISTANBUL AND ANKARA, TURKEY
- Country: Turkey
- Topics: Economic Events,Equities Markets
- Reuters ID: LVA00157Q4SP3
- Aspect Ratio: 16:9
- Story Text: The Turkish lira slid more than two percent to a fresh record low against the dollar early on Wednesday (November 9) as investors faced a shock win by Republican Donald Trump in the U.S. presidential election.
The lira stood at 3.2200 against the U.S. currency at 0429 GMT, having touched a low of 3.3000 overnight, and compared with a level of 3.1710 early on Tuesday (November 8) evening.
Research Director at IS Investment, Serhat Gurleyen, said the initial reaction of markets was predictable.
"It is not the end of the world. Usually markets first deny the news and then they become angry about it, and then they admit it and they accept it. They try to see the good side of the picture," he said, adding that the result could benefit Turkey.
"Probably FED will be less aggressive in increasing the rates and the U.S. dollar will not be so strong. It also means 10-year U.S. bond will not be as high as expected. And it is good news for Turkey because Turkey needs to borrow from global markets. That is why we are less worried about U.S. result," Gurleyen said.
Donald Trump's victory in the U.S. presidential race throws into question the core assumption in global financial markets that the Federal Reserve will raise interest rates soon and follow with further gradual hikes over coming years.
Financial markets swooned after Trump's win, with the dollar and stocks sinking and safe-haven sovereign bonds and gold shooting higher, reflecting fears of a prolonged global uncertainty over the Republican's policies.
Market turmoil has stayed the Fed's hand in the past, including a Chinese stock market slump in 2015 and the aftermath of Britain's vote to leave the European Union last June.
Investors have tended to favour Trump's Democratic rival Hillary Clinton as a status quo candidate who would be considered a safe pair of hands at home and on the world stage.
Trump has pledged to tear up or renegotiate international trade agreements, which could set off a wave of protectionism, threatening to stall a tentative global economic recovery. His economic plans call for massive tax cuts that many economists estimate would sharply boost the U.S. budget deficit. - Copyright Holder: REUTERS
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