PR International

Currency update | October 2018

The increase in global risk, and looming trade wars appear to be good for the US Dollar which has strengthened year to date, especially against emerging market currencies.
The U.S. Dollar continued its strong run against the Turkish Lira in September. A strong dollar puts pressure on export prices in the near term. In Turkey, the country is at risk of higher inflation and a broader financial crisis. The effects to the economy can be quick and painful, especially as local producers face higher input costs like fuel, grain, etc.
Any interest rate rise would make capital more expensive and harder to come by. Banks are already pulling back and inevitably reducing lending activities. This all makes doing business far more difficult, especially for forward positions. In volatile times like these, it is important to stay well covered & review the strength of your supply chain.

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