The Australian dollar weakened as China announced 7% growth, which is viewed as being “significantly” lower than the 7.5% growth target. This lower growth in China is likely to hit the Australian currency more than any other, given that China is Australia’s largest trading partner. The pressure also comes from the Reserve Bank of Australia’s dovish forward prediction with regards to the interest rates. China’s plans to run its biggest budget deficit in 2015 has failed to provide any support to the Australian currency.
Turkish Lira Reached All Time Low
The Turkish lira had hit an all-time low as concern mounted over the President’s battle with the central bank, causing the currency to lose 10% of its value so far this year. Investors have been rattled by Erdogan’s demands that the central bank, which is battling inflation as well as the weak lira, must deliver sharper interest rate cuts.
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