The Turkish lira recovered some of its losses after plunging by as much as 4.5% on Wednesday, its sharpest decline since 2008.
The lira crashed on news Turkish Prime Minister Ahmet Davutoglu is expected to step down.
The lira is now back up 2.0% at 2.9025 per dollar.
“Davutoglu is regarded as heading up the orthodox wing of the AKP, so his exit would be negative for Turkey and its relations with the West,” wrote Marc Chandler, global head of currency strategy for Brown Brothers Harriman, in a note to clients.
“We note that while the Turkish lira has recouped the sharp losses seen in thin dealings in the New York afternoon yesterday, the asset markets are under pressure today as equities are lower and bond yields are higher,” he added.
As for the rest of the world, here’s the scoreboard as of 8:01 a.m. ET:
- TheRussian rubleis stronger by 1.3% at 65.6982 per dollar, and the Mexican peso is up 0.5% at 17.7084 per dollar. Both petrocurrencies have been boosted by the rising oil prices this year. Notably, at Wednesday’s Sohn Investment Conference in New York, PointState Capital’s Zach Schreiber, who made $1 billion betting against oil two years ago, said he is going long both the ruble and the peso.The Chinese yuan finished up 0.1% at 6.5039 per dollar after the April reading of the Caixin-Markit China services purchasing managers’ report fell to 51.8 in April from 52.2 in March. Sentiment was the only negative in the report, as new orders hit their highest level in three months, and order backlogs climbed for the first time this year.The British pound is weaker by 0.3% at 1.4456 after the UK’s services PMI came in weaker than expected at 52.3, below forecasts of 53.5. The US dollar index ticked up for the second day by as much as 0.4% at 93.58 ahead of a light data day. Initial jobless claims, which have been near their lowest levels since 1973, will be out at 8:30 a.m.