The past few days have not been kind to the euro. The single currency is currently being pressured by the developments in Turkey, where a financial crisis is brewing. The Turkish lira has lost more than 30% of its value this year amid record-high inflation of around 15%, which is five times higher than what developed countries aim for and about three times higher than what economists expect of Turkey. Because many European banks operate in Turkey, there are worries that financial trouble there would carry over to banks in the EU. Because of this, right now the euro is at its lowest in over one year.
The new global risks associated with the Turkish financial problems has pushed investor interest towards safe-haven currencies. In particular, today we see a strengthening in the Japanese yen and the Swiss franc.
Meanwhile, the dollar remains strong, and the dollar index climbed to 96.46.
