Euro Down, Safe Haven Currencies Higher on Turkish Lira Crash By Investing.com

Investing.com – The euro was trading at more than one-year lows on Monday as a crash in the Turkish lira roiled global markets amid fears that the country’s financial crisis could spread to European markets.

The lira fell to a record low against the dollar overnight with hitting 7.0303, before easing back slightly to 6.7779, still up 5.84% for the day.

The lira found some support after Turkey’s central bank and cut lira and foreign currency reserve requirements for Turkish banks.

Fears over mounted after the European Central Bank warned Friday that a number of euro zone banks might be exposed to the sharp decline in the Turkish lira.

Turkey’s currency has tumbled more than 40% this year on worries about President Tayyip Erdogan’s and deteriorating relations with the U.S, chiefly over the war in Syria.

The euro fell to its lowest levels in more than a year, with down 0.31% at 1.1382 after touching a low of 1.1365 earlier.

The drop in the euro came as the falling lira fueled demand for safe havens, including the U.S. dollar, Swiss franc and yen.

The , which measures the greenback’s strength against a basket of six major currencies, was up 0.15% to 96.33, the most since June 27, 2017, after gaining 1.33% last week.

The yen was higher against the dollar and the euro, with shedding 0.53% to trade at 110.21 and down 0.94% to 125.39.

The euro fell to one-year lows against the Swiss franc, with down 0.35% to 1.1315.

The pound was wallowing near its lowest levels since June 2017, with at 1.2760, pressured lower by the stronger dollar and fears over the growing prospect of a ‘no-deal’ Brexit.

Elsewhere in emerging markets, Russia’s fell to its lowest level since mid-April 2016, weighed down by the broadly stronger dollar, falling oil prices and concerns over the impact of a fresh round of U.S. sanctions.