Entering into US session, Yen remains the strongest one followed by Swiss Franc. Risk aversion is the main theme for today on Turkish Lira crisis. Australian Dollar is trading as the weakest one while Euro follows as the second.
Measures by the Turkish central bank CBRT appeared to have stabilized sentiments a bit. USD/TRY dropped to as low as 6.4136. But apparently, there is no trend reversal yet. Lira is quickly back under pressure with USD/TRY now trading above 7.000 handle again.
In other markets, European stocks appear to be rather calm. At the time of writing, DAX is just down -0.68%, CAC down -0.21% and FTSE down -0.58%. Selloff in Asia was much more serious. Nikkei was also hit by the strength in Yen and closed down -1.98%. Hong Kong HSI closed down -1.52%, Singapore Strait Times closed down -1.20%.
However, China’s Shanghai SSE showed some resilience and closed down just -0.34% at 2785.87. It pared back much losses after dipping to as low as 2742.55. However, as USD/CHN (offshore Yuan) is heading back towards 6.9. We could see more pressure on Chinese and Asian stocks, thus Australian Dollar too, should Yuan’s free fall resumes.