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The US Dollar Muscles Higher as Turkey Melts Down
The US dollar has surged. The main impetus comes from the dramatic slide in the Turkish lira. After moving above TRY5.0 yesterday, it reached TRY6.30 today before stabilizing a little below TRY6.0 as the European morning progressed. The trigger seemed to be the lack of credibility of the government's response as investors await officials to elaborate on the outline of the "new economic model" provided yesterday. Turkey's five-year credit default swap, insurance, is more expensive than nearly all countries but Argentina and Venezuela. There are three possible ways out, it appears. First, Erdogan can take bold ... (full story)