The euro was soft near 13-month lows on Monday as a slide in the Turkish lira sparked a sharp sell-off in the South African rand and boosted demand for safe havens such as the U.S. dollar and the yen.
After hitting a record low of 7.24 against the dollar early on Monday, Turkey’s lira found some support after Finance Minister Berat Albayrak said the government has drafted an economic action plan to ease investor concerns while the banking watchdog said it limited swap transactions.
The South African rand and Mexican peso were also weak against the U.S. dollar on Monday as the lira crisis unsettled other emerging market currencies.
The euro was hit hard on Friday after the Financial Times, citing two sources, reported that the European Central Bank had concerns about banks in Spain, Italy and France and their exposure to Turkey.
