Last week US news, domestic concerns and a volatile market pushed the Lira to an historic low of 1.9499 against the US Dollar.
At the current Exchange Rate one US Dollar is worth 1.9420 Turkish Lira as of 11:45 GMT
The Turkish currency continues to trade close to the record low after declining modestly in reaction to an announcement made by the Central Bank of the Republic of Turkey.
Today Turkey’s premier financial institution outlined its intention to stage one-off foreign exchange auctions of a minimum of 150 million Dollars on those days when it offers Lira funding at its policy rate of 4.5 per cent.
It is hoped that this measure will help to control interest rates and prevent the Lira from declining further. According to industry expert Tufan Comert; ‘The central bank does not want interest rates to rise. Therefore it wants to return to funding from its policy rate, but this will reduce the attractiveness of the Lira. So demand for foreign exchange will rise and with foreign exchange selling auctions the bank will try to balance this.’
Before the announcement the Lira was trading in the region of 1.9427 against the US Dollar
Some economists are expecting that in light of recent developments Turkey’s central bank will soon call an emergency meeting in order to discuss potentially increasing the upper end of its interest rate corridor.
The steps outlined by the central bank today prompted currency strategist Ipek Ozkardeskaya to comment: ‘The chances are slim that the central bank’s 150 million Dollar sale can counter the Lira selling pressure in the market at this stage. It is strongly probable that the Dollar will keep strengthening this week after the Fed meeting.’
Also today, an index of business confidence in Turkey is expected to have fallen from 112.50 in May to 110.62 in June, in response to the recent social unrest.
Other Turkish economic data to focus on this week includes Thursday’s consumer confidence index (which economists have predicted will edge down from 77.46 to 77.03) and the nation’s balance of trade data, due out on Friday.
Current Turkish Lira (TRY) Exchange Rates
< Down > Up
The Turkish Lira/Pound Sterling Exchange Rate is currently in the region of: 0.3356 >
The Turkish Lira/Euro Exchange Rate is currently in the region of: 0.3933 <
The Turkish Lira/ US Dollar Exchange Rate is currently in the region of: 0.5153 <
The Turkish Lira/Japanese Yen Exchange Rate is currently in the region of: 50.6310 >
The Pound Sterling/ Turkish Lira Exchange Rate is currently in the region of: 2.9766 <
The Euro/Turkish Lira Exchange Rate is currently in the region of: 2.5461 >
The US Dollar/Turkish Lira Exchange Rate is currently in the region of: 1.9420 >
The Japanese Yen/Turkish Lira Exchange Rate is currently in the region of: 0.0198 <
(Correct as of 11:45 GMT)
Comments are closed.