The biggest story right now in global financial markets is Turkey, and in particular its currency problem.
Basically, the currency has been tanking amid economic and political turmoil.
Last night, The Turkish Central Bank did a massive rate hike to stop the bleeding. But this morning, much of the gains from yesterday are wearing off.
To grasp the volatility, here’s a one-week chart of USD vs. TRY.
As you can see, the US Dollar soared against the Turkish Lira until Monday morning when Turkey announced that it would hold a special central bank meeting to halt the bleeding. That caused a rapid turnaround as the dollar weakened dramatically against the Lira. But as of this morning, the Turkish currency is weakening again as investors wonder whether what the Central Bank did will be enough.
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