It didn’t in Brazil in the mid 2000s
Turkish Lira (TRY)
- Thread starter m22au
- Start date
It didn’t in Brazil in the mid 2000s
What.. currency depreciation?
In 2007 Brazil was running pretty high inflation and the forwards for options reflected it. However the currency appreciated a lot.
Yeah I'm just looking at it now... so from mid 2002 until mid 2008 the Real roughly doubled vs USD. Can't find a decent inflation chart for that period yet. But their interest rate went from just under 20% to about 12%.
So... did the appreciation of the Real cause the drop in interest rates, because their Central Bank wanted to keep a lid on it?
I don’t remember on the interest rate side. I do remember getting crazy levels on Brazil etf risk reversals and earning big on them because of the foreign currency.
Long the calls I assume? That's what inflation typically does... domestic stock market shoots. Kinda surprised that inflation went up... currency as well and rates down. That's like a triple whammy to the upside.
What was the cause for that all to happen, do you remember? Bovespa went x6?
Inflation, interest rates didn’t matter. It was all about the BRIC’s and emerging markets and commodities.
"Turkey Cut Deeper Into Junk by S&P on Risk of ‘Hard Landing’"
https://www.bloomberg.com/news/arti...eper-into-junk-by-s-p-on-risk-of-hard-landing
S&P reduced its foreign-currency rating to BB-/B
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https://www.bloomberg.com/news/arti...eper-into-junk-by-s-p-on-risk-of-hard-landing
S&P reduced its foreign-currency rating to BB-/B
.
Haha this post seems accurate.
"Turkish lira weakens to record low beyond 4.2 against dollar after inflation data"
https://www.nasdaq.com/article/turk...st-dollar-after-inflation-data-20180503-00150
May 03, 2018, 03:09:00 AM EDT By Reuters
The Turkish Statistical Institute said that the consumer price index climbed 1.87 percent month-on-month in April.
This exceeded a Reuters poll forecast of 1.6 percent, for a rise of 10.85 percent year-on-year.
"Turkish lira sinks to new record low as inflation rises"
https://www.ft.com/content/d448c78e-4e9f-11e8-a7a9-37318e776bab
.
https://www.nasdaq.com/article/turk...st-dollar-after-inflation-data-20180503-00150
May 03, 2018, 03:09:00 AM EDT By Reuters
The Turkish Statistical Institute said that the consumer price index climbed 1.87 percent month-on-month in April.
This exceeded a Reuters poll forecast of 1.6 percent, for a rise of 10.85 percent year-on-year.
"Turkish lira sinks to new record low as inflation rises"
https://www.ft.com/content/d448c78e-4e9f-11e8-a7a9-37318e776bab
.