Euro touches 13-month nadir versus dollar amid Turkey woes

Euro tilted lower in American trade to July 5, 2017 lows as concerns over the collapse of the Turkish lira hurt the common currency. 

As of 03:50 GMT, EUR/USD inched down 0.04% to 1.1409, with a 13-month nadir at 1.1365, and a session-high at 1.1433. 

German Chancellor Angela Merkel called on Turkey to ensure the independence of the central bank as investors lose confidence in the economy, while the local currency plummets to successive record lows against the dollar. 

Merkel added: “Nobody has an interest in an economic destabilization in Turkey. But everything must be done to ensure an independent central bank,”

In a Financial Times report, the European Central Bank has expressed growing concerns about the exposure of European companies to the Turkish economy as it takes a heavy hit, in turn weighing on the euro. 

The Turkish crisis came after US President Donald Trump imposed a 20% additional tariff on steel imports and 50% on aluminum imports from Turkey, while investors criticize Turkish President Recep Tayyip Erdoğan's interference in the monetary policy of the central bank, eroding trust in the markets. 

Otherwise, President Donald Trump warned Canada in another tweet while lauding Mexico "Deal with Mexico is coming along nicely. Autoworkers and farmers must be taken care of or there will be no deal. New President of Mexico has been an absolute gentleman. Canada must wait. Their Tariffs and Trade Barriers are far too high. Will tax cars if we can’t make a deal!".

Trump has repeatedly blasted the NAFTA trade deal with Mexico and Canada, describing it as the worst in US history and blaming it for harming US farmers and workers.