Financial markets are still under pressure from the Turkish lira crisis. The important European stock market indices fell by a few percentage points last week. The market opening a few minutes ago showed a mixed picture. No relief rally yet.
The euro also took a beating recently: by the end of July it traded at 1.17 against the US dollar; early this morning it fell to 1.132. Additionally, the euro also fell sharply against the yen. The fear is that the Turkish crisis will hit the European banking sector hard. A number of Southern European banks have large exposures on Turkey. As such, it appears that the dollar and the yen are the safehavens in this crisis.