The 'extreme volatility' in Turkish liraLea Jakobiak
Saxo's Global Head of FX Spot Nana Dahlerup is seeing "extreme" volatility in the Turkish lira (TRY); it hit another record low versus the US dollar, with USDTRY reaching the 2.39 level. As a result of the lira's sharp fall, the Turkish central bank will meet in emergency session later on Monday evening.
The bank said it would "discuss recent developments and take the necessary policy measures for price stability" at the meeting. Nana explains the markets think it will either "aggressively hike rates above 11 percent", or that it will introduce capital controls. Last week, the central bank decided to hold rates steady at its rate-setting meeting.
Meanwhile, trader Dan Larsen explains that things are "more calm" for the dollar yen spot market and adds that even though volumes are lower he says interest remains in downward strikes.