The story continues as the selloff in Turkish Lira continues in Asian session today. Yen is leading the way higher, followed by Swiss Franc on risk aversion. Euro is the weakest one followed by Australian Dollar. Asian markets are in deep red. At the time of writing, Nikkei is down -1.85%, Hong Kong HSI down -1.83%, Shanghai SSE down -1.73% and Singapore Strait Times down -1.20%.
USD/TRY rally could have stabilized a bit. It breached 7.2 handle earlier today, but it’s now back at 6.82, up 6.3%. However, another trouble could be in the making as USD/CNH (offshore Yuan) is picking up strength today.
Currently at 6.88, it could be ready to have a take on recent high at 6.921. And it looks like the Chinese government’s effort on support the Yuan is rather fruitless.