At the start of the new day, the prices of the dollar and gold are among the most curious topics. Investors and dollar citizens who closely follow the market on the internet “How much is the dollar worth today? How much are euros and pounds sterling?” seek answers to questions. direct and exchange rate…
HOW MUCH IS THE DOLLAR TODAY? (APRIL 12)
The dollar/TL is trading at 14.68 after starting the day on the upside.
Moving in a downtrend yesterday, the dollar/TL closed the day at 14.6634, 0.6% below its previous close.
After starting the new day with a gain in value, the dollar/TRY is trading at 14.6770, 0.1% above the previous close at 10:50 am. In the same minutes, the Euro/TL is sold at 15.9450 with a drop of 0.1%, and at 19.1020 with a drop of 0.07% in sterling.
The dollar index stabilized at 100.1 in the following minutes, after hitting its highest level since May 18, 2020 at 100.2. The euro/dollar parity, on the other hand, found takers at 1.0860 with a drop of 0.2%.
Analysts noted that expectations that central banks would maintain their hawkish stance amid inflationary pressures supported the selling trend in U.S. bond markets, which in turn boosted demand for dollars.
Analysts said risk appetite was low globally before inflation data was released in the US today, and inflation is expected to peak at 8.4 % per year in March.
While US Federal Reserve (Fed) officials, who issued statements yesterday, addressed the 50 basis point rate hike positively in their verbal advice, Fed member Christopher Waller said they focused on minimizing the undesirable harm that would result from their policies. , but that they could not allow monetary policy flexibility.
With these developments, the yield on US 10-year bonds has risen for eight straight days, reaching 2.83%, the highest level since December 2018. In bond markets, the 84% probability that the Fed will raise rates rate of 50 basis points in May began to settle.
Analysts noted that verbal indications regarding the details of the Fed’s balance sheet reduction could increase market volatility and noted that Germany’s ZEW anticipation indices were also at the forefront of today’s data calendar. today.
What is the exchange rate?
Exchange rate; It is expressed as a coefficient indicating the value of a country’s currency relative to the currencies of other countries. There are two options for transactions to be made with a foreign currency, which is one of the most used investment instruments in international trade, such as the buying rate and the selling rate.
How many exchange rate systems are there in Turkey?
Flexible market exchange rate: It is the name given to the system in which the Central Bank does not intervene and the exchange rate fluctuates freely.
Fixed exchange rate system: It is the system in which the Central Bank intervenes to maintain the equilibrium of the exchange rate.
Controlled exchange rate system: It is the name given to the exchange rate system in which the Central Bank operates to control the fluctuation of the exchange rate.
What are the types of exchange rates?
Nominal rate: It is the name given to the value of foreign currencies in relation to the national currency. It is a type of exchange rate that indicates the equality of 1 US dollar of another unit to a foreign currency.
Actual exchange rate: The real exchange rate is obtained by adjusting the nominal exchange rate within the inflation rate. For this reason, the value of the nominal exchange rate is directly related to the real exchange rate. In the event of an increase in the real exchange rate, the TL share in the USD/TL parity depreciates.
Exchange rate: It is the name given to the exchange rate of foreign currencies against another foreign currency. For example; When the person wants to buy euros with the dollar he has, the cross rate is in question.
Effective rate: The effective exchange rate is calculated by calculating the average of two exchange rates between them. Before trading in the cross currency, the value of the currency must be learned. For example; If the types of currencies to be exchanged are dollars and euros, it is necessary to know how much 1 dollar and 1 euro are worth.
What are the factors affecting the variation of the exchange rate?
Balance of payments: This is the name given to the register of economic transactions in the country. Payments imbalances can be eliminated by implementing active exchange rate policies. Changes in currency prices alter the balance of supply and demand. Differences in supply and demand also impact creditors and debtors.
Income level: When the average income of the country is higher than that of other countries; For each exchange rate, there is an increase in the country’s imports. While the supply remains unchanged, the exchange rate increases, causing the country’s currency to depreciate. Interest in imported goods increases, as the demands and tastes of people with a higher level of income will begin to differ. This causes an increase in the demand for currencies as well as a change in the equilibrium rate.
Changes to the general price level: High inflation in the country makes products produced in the country more expensive than abroad. Consequently, the demand for imported goods increases and the country’s currency depreciates. Inflation and the value of money are inversely proportional.
Interest rate: When the real interest rate goes down, the country’s currency depreciates, and when the real interest rate goes up, its currency appreciates.
Capital movements: Capital movements are one of the most important factors in the evolution of the exchange rate in the short term.