As the new day begins, foreign exchange rates hit record levels, with the Euro surpassing 30 Turkish Liras for the first time in history. USD/TRY reached a new high at 27.10 Turkish Liras.
The domestic markets started the second trading day of the week with volatility. As foreign exchange rates hit record levels, the Euro surpassed 30 Turkish Liras for the first time in history. The rise in the USD/TRY exchange rate also pushed the price of gram gold to its peak. All eyes are now on the interest rate decision of the Central Bank of the Republic of Turkey (CBRT), which will be announced on Thursday. Market expectations suggest that the CBRT will raise its one-week repo auction interest rate (policy rate) by 500 basis points, bringing it to 20 percent.
Dollar sets a new record The USD/TRY exchange rate started the day by hitting a historic high. The rate reached a record of 27.10 Turkish Liras and is currently trading at 26.8840 TL with a 2.11 percent increase as of 11:11 am.
Yesterday, the USD/TRY exchange rate closed at 26.33 TL in the Turkish markets.
Euro surpasses 30 TL The Euro surpassed the psychological level of 30 Turkish Liras for the first time in history and reached its peak at 30.3730 TL. As of 11:11 am, the Euro is trading at 30.2684 TL, showing a 2.28 percent increase.
Meanwhile, the British Pound exceeded 35 Turkish Liras, reaching its peak at 35.3018 TL, and is currently trading at 35.2126 TL.
The interest rate decision is expected on Thursday
Integral Investment has published the following report regarding the potential impact of the Central Bank of the Republic of Turkey’s (CBRT) interest rate decision on exchange rates.
Yesterday, Treasury and Finance Minister Mehmet Şimşek met with US Treasury Secretary Janet Yellen during his participation in the G20 meetings in India. The US Treasury Department issued a statement regarding the meeting, mentioning that Yellen discussed Turkey’s economic outlook and policy direction with Şimşek and Erkan. The USD/TRY pair continues to show a moderate positive trend. The focus will be on the Central Bank of the Republic of Turkey’s (TCMB) interest rate decision, which will be announced on Thursday this week.
Technical Analysis: The USD/TRY pair is continuing its upward movement in the overall picture. It is maintaining its positive movement above the broad range we are monitoring. We observe a general positive trend. From a technical level perspective, we are monitoring the level of 26.50, and above this level, the level of 27.00 could be followed. On the downside, the support level of 26.00 may be monitored.
Support levels: 26.00 / 25.50 / 25.00 Resistance levels: 26.50 / 26.80 / 27.00