Dollar Falls as Investors Seek Riskier Emerging-Market Currencies - WSJ

July 18, 2016
The dollar fell on Monday as investors shrugged off Friday's attempted coup in Turkey and sought out riskier emerging-market currencies.

The WSJ Dollar Index, which measures the U.S. currency against 16 others, slipped 0.1% to 87.30. The greenback was recently down 2.3% against the South African rand, 1.3% lower versus the Mexican peso and down 1% against the Brazilian real.

The Turkish lira dropped nearly 5% against the dollar Friday, its biggest one-day decline since 2008, after factions of the Turkish military attempted a takeover. The currency stabilized Monday after Turkish President Recep Tayyip Erdogan reasserted control over the weekend. The dollar was recently down 1.7% against the Turkish lira.

"For now, it seems to be calm in the wake of Turkey," said Win Thin, global head of emerging-market currency strategy at Brown Brothers Harriman, adding that investors are in a "sweet spot" for putting money into emerging markets.

Meanwhile, investors refocused Monday on Japan's efforts to stimulate its economy, sending the dollar higher after its biggest weekly increase against the yen since 2009. The dollar rose 1.3% against the yen to Y106.19.

The pound rose 0.5% to $1.3256 after Bank of England policy maker Martin Weale sounded a cautious tone on tightening monetary policy.

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Steven Rich
Sep 17, 2018:
Well done

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