Fed Papers

After the Fed's minutes, the dollar rose above the 3.72 lira

The dollar rebounded to 3.72 liras after the US Federal Reserve (Fed) revised its view that "a gradual increase in interest rates would be appropriate" in its March minutes.

The Federal Reserve announced last week that the US economy "will continue to see gradual interest rate hikes" in its minutes highlighted by the performance predicted and will continue to improve, and it is also underlined that they are "ready to change if necessary" to evaluate the "interest rate hikes".

The rise of the dollar, which has turned its direction upward as inflation expectations have surpassed in Turkey, has also been supported by the Fed minutes. The dollar, which tested 3.70 liras in the shallow market during the opening hours of the minutes, rose to 3.7285 liras in the new day, while the euro rose to 3.9787 liras due to the parity effect. Towards the middle of the day, the dollar was at 3.71 – 3.73 pounds and the euro was moving at 3.95 – 3.97.

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"Music is cut off, dance is over"

"Global markets have been pausing on the warning that the Fed may not be able to keep up with the music," said IS Investment's daily market report, "The music ends when the music ceases." It was said that the FOMC minutes were mixed with the Fed's message that the $ 4.5 trillion-dollar bill could be reduced. The following assessment was made:

"We cannot tell from the FOMC (Fed) minutes that global markets will end up dancing risky, and global liquidity is similar to toothpaste coming out of the tub. It is easy to come back, very difficult to come back to four years after May 2013, when the Fed gave a message to reduce asset purchases. However, in a situation where valuations are near peak and long positions are weighted, the market may react harshly to possible bad news, and a review of the past reveals that high betting Turkish assets are among the worst performing investment instruments in the global risk appetite

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    fatma Written by:

    Fatma Şahin fatmasahin@istanbulinvestments.com

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