By Will Peters

The Turkish Lira (TRY) and South African Rand (ZAR) have stolen the limelight through the course of Wednesday's trading session as both central banks hike interest rates.

Turkish Lira exchange rates

The pound sterling to Turkish lira exchange rate (GBP-TRY) is trading higher by 0.03 pct at 3.7320 while the US dollar to Turkish Lira (USD-TRY) is trading 0.09 pct higher at 2.2574.

Turkey’s central bank ignored pressure from Prime Minster Erdogan and raised the nation’s key borrowing costs by a massive 4.25% in an emergency session late yesterday. The move was designed to halt selling pressure that has seen the lira slide by over 10% in the past month alone.

"The move initially sent the lira soaring but given the long list of structural issues facing Turkey’s once red-hot economy, failed to provide any long-lasting support for the currency. The lira has fallen back near pre-rate hike levels this morning.," says Omer Esiner at Commonwealth Foreign Exchange.

Also commenting on the moves in TRY is a note issued by the Olympia Trust Company: "Such a big rise in interest rates when inflation and growth are not there to support it will only serve to hamper growth and crush the housing market as markets have already indicated their distaste for the surprise move both selling off the Lira and sending equity markets lower."

PLEASE NOTE: All ZAR and TRY exchange rate quotes are spot market rates. Your bank will affix a spread to these wholesale rates. However, an independent FX provider will guarantee to undercut your bank's offer, thereby delivering you more currency for your payments or transfers. Please learn more here.

South African Rand exchange rates

The pound sterling to South African Rand exchange rate (GBP-ZAR) is trading 1.63 pct higher at 18.5724 while the US dollar to South African Rand exchange rate (USD-ZAR) is trading 1.74 pct higher at 11.2243.

The same fundamental dynamics regarding the TRY are pressuring the ZAR lower. Markets saw the SARB's rake hike as a sign of panic and quickly went to work on the rand.

"South Africa’s SARB followed Turkey, India and Brazil’s central banks with a surprise rate hike this morning, in a failed attempt to halt capital flight out of its economy. After a brief rally, the rand fell by over 2.5% against the dollar this morning," says Esiner.

Olympia Trust say:

"South Africa was next to follow suit with an unexpected 0.50% interest rate hike in order to stabilize the country and stop the selloff in the Rand.

"Argentina was the next struggling emerging market nation to intervene, injecting $115M to steady the Peso against the USD. Investors around the globe have good reason to be concerned of emerging market contagion spilling into the more developed economies."

Meanwhile, looking at the primary currency markets we see all is calm. Indeed, the pound sterling has hardly budged today.

Markets will now be awaiting moves from the US Federal Reserve. There was general USD strength coming into the US morning session as anticipation of the continuation of the Fed’s taper plan maintains support for the USD.