The Turkish lira fell hard against the greenback in yesterday’s trading. The lira recorded the first flash crash since January 3, 2019.
The USD to TRY trading pair went up by 1.04% in yesterday’s session. The pair reached ranges between ₺5.7732 and ₺5.8495.
The greenback took advantage of the weakening lira as traders worry about the prolonged trade war between the United States and China.
Forex traders called the drop as a “flash crash,” the last flash crash of the Turkish lira was recorded at the beginning of the year.
Since January’s drop, the Turkish currency made an impressive recovery. But traders have gotten worried about its gains.
The lira wasn’t able to hold up the weight of the pressure from the trade war. The recent events in the trade war thinned the remaining optimism from traders.
Just recently, the Chinese government announced that it will retaliate with tariffs targeting $75 billion worth of US goods.
Meanwhile, on the Western side of the globe, Washington was not having it. The US President Donald Trump responded that he will impose sanctions to over $550 billion Chinese exports.
The move caused the Turkish lira to decline in yesterday’s sessions.
Aside from the greenback, the lira also lost against its other trading pairs. Major Currencies such as the EUR, GBP, JPY, and CNY took advantage of the struggling currency.
The EUR to TRY trading pair rose by 0.72% or 0.0461 points in yesterday’s sessions. The pair hit levels from ₺6.4329 to ₺6.5243 in sessions.
The GBP to TRY went up by 0.76% or 0.0536 points. It soared to ranges between ₺7.0835 and ₺7.1768 in Monday’s trading.
Other major currencies in Asia also gained against the lira. The JPY/TRY trading pair 0.58% or 0.00032 points. The trading pair climbed levels from ₺0.05469 to ₺0.05556.
And the CNY/TRY pair inched up by 0.27% or 0.0022 points yesterday. The pair reached ranges between ₺0.8096 to ₺0.8220 in sessions.