Markets

Turkish lira weakens 1 percent against dollar

Published January 3, 2019 Updated January 3, 2019 07:43am

Market attention was now focused on December inflation data set to be released at 10 am (0700 GMT). Annual inflation is expected to ease to 20.52 percent, a Reuters poll showed on Friday, as tax cuts and discounted products decreased prices.

Month-on-month, the consumer price index is expected to fall 0.23 percent.

The lira, which briefly touched a level of 6.4486 overnight, stood at 5.4900 at 0642 GMT, weakening from Wednesday's close of 5.3952.

U.S. stock futures fell and Asian shares wobbled on Thursday after a rare revenue warning from Apple Inc added to worries about slowing global growth and weaker earnings. The news sparked a 'flash crash' in holiday-thinned currency markets as investors rushed to less risky assets.

The lira lost almost 30 percent of its value against the dollar last year and has lost nearly 4 percent more so far in 2019.

"Looking at the trend in the first two days of the year, there is a very strong flight from risk," said a forex desk trader at one bank. "With such strong global growth worries, the rate of U.S. interest rate hikes and trade wars bring strong selling pressure."

Copyright Reuters, 2019