Last night, the Fed’s ’emergency’ interest rate cut decision brought about different comments in the markets. While developing country currencies are strengthening against the dollar; The interest rate cut caused a decline of nearly 3 percent in the US stock markets. The Dow Jones index closed with a decrease of 2.94 percent, the S&P 500 index with a decrease of 2.85 percent, and the Nasdaq index with a decrease of 2.99 percent.
Why did US stock markets fall so hard?
This decision of the Fed, which made an ’emergency’ interest rate cut outside the planned meetings for the first time since 2008, led to increased concerns and question marks in the markets about the US economy. Investors began to look for other reasons behind the interest rate cut, which was announced to be made to reduce the damage that the coronavirus could cause in the markets. It is also stated that the inflation target cannot be achieved, the Fed is worried about a recession, and the coronavirus outbreak is an excuse to cut interest rates.
Dollar/TL rose above 6.13.
With the Fed’s decision, dollar/TL was reduced to 6.05 levels. Then, with the reaction purchases against the rapid withdrawal, the exchange rate stabilized in the 6.10-6.12 band throughout the night. The dollar/TL exchange rate, which turned upward in the early hours of this morning, is priced just above 6.13. As of 09:25, the dollar/TL exchange rate is 6.1340; euro/TL is valued at 6.8420.
Domestic markets will closely follow the repercussions of the Fed’s decision today, as well as the developments on Idlib.
Gold prices also started to rise
Gold prices started to rise again in the markets stimulated by the Fed’s interest rate decision. With the spread of the coronavirus epidemic, spot gold prices, which were based at 1700 dollars, have fallen below 1600 dollars in recent days. With the Fed’s surprise interest rate cut decision, the ounce price of gold climbed from 1600 dollars to over 1650 dollars. This morning, the ounce of gold was at 1642 dollars.
Source: https://www.dunya.com/finans/haberler/dolar-dusuyor-altin-yukselise-gecti-haberi-464060
