Markets drifted lower, starting the week on the back foot as the G7 summit which started on Sunday entered its second day. There still seems to be no clear outcome between Greece and its creditors on a revised deal which would see the indebted nation receive much needed emergency funding. Athens are unwilling to accept what they deem as harsh structural reforms to labour and pension policy and with talks dragging on for months market participants are hopeful that a deal can be reached soon.
The Turkish lira hit a fresh record low against both the dollar and the pound sterling today after a period of significant uncertainty ahead of this weekend’s elections. Immediately gapping 3.3% higher from Friday’s settlement, the lira spiked towards 2.8096 against the dollar and 4.2882 against the pound in response to President Recep Erdogan’s AK party losing its majority. The lira also saw steep losses against the euro, trading towards 3.1179 earlier today before Turkey’s central bank responded by cutting foreign exchange deposit ratios which allowed it to recover some of these precipitous losses as it traded back towards 3.0830 in the afternoon.