Oil jumped to a two-year high rising above $70 a barrel after OPEC and its allies forecast greater demand and decided to increase the “black gold” commodity output. The increase comes as a result of the global economic recovery which has caused the prices for a large number of commodities to rise.
Turkish Lira Plunges To New Record Low
The Turkish lira plummeted to a record low against the US dollar as President Recep Tayyip Erdogan called for lower interest rates again. During an interview with TRT, the Turkish national public broadcaster, he stated: “I spoke with our central bank governor today. It’s an imperative that we lower interest rates. For that, we will reach July and August thereabouts so that rates can begin to fall”. Erdogan was attempting to explain his unusual belief that lower borrowing costs can help slow inflation. This belief is contrary to what other central bank officers believe.
Inflation Concerns
While global stocks trade at record highs, concerns about inflation remain. Investors worry that economic recovery could lead to climbing prices and central banks could withdraw support sooner than expected. Traders are eyeing U.S. payroll data slated to be released on Friday as a possible source for more clarity on this topic. Lael Brainard, a member of the Federal Reserve Board of Governors, said that there are risks whichever direction the Fed decides to take as the US economy rises and millions remain unemployed.
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