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8/20/2018, 10:11 AM (Source: TeleTrader)
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Turkish lira weakens after shooting at US Embassy

Rating downgrades by S&P Global and Moody's Investors Service added market pressure on Turkey and its currency was down in morning trade on Monday. Investors were parsing through reports for the fallout after unknown attacker or attackers opened fire today at a security booth outside of the United States Embassy in Ankara. Police are searching for a white car that fled the scene. The incident happened during a severe geopolitical and trade dispute between the two countries.

The credit appraisers pushed sovereign grades deeper into the so-called junk part of the scale on August 17. S&P cut the rating to B+ from BB-, giving it a stable outlook, and cited "the extreme volatility of the Turkish lira." The agency said it expects a recession next year. The outlook at Moody's deteriorated to negative with a Ba3 grade, cut from Ba2 on the "continuing weakening of Turkey's public institutions," among other factors.

The dollar rose 1.18% to 6.1023 Turkish liras at 10:09 am CET, while the euro's rate strengthened 0.79% to 6.9679. However, the Dow Jones Turkey Titans stock index jumped 2.05%.

Baha Breaking News (BBN) / IT