With a semblance of calm returning to Istanbul, bonds rising and the Turkish central bank taking volatility limiting measures, the Lira was able to advance against the US Dollar for a third day.
At the current Exchange Rate one US Dollar is worth 1.8650 Turkish Lira as of 12:00 am GMT
The Lira is now in line to achieve its highest level against its American counterpart since the end of May.
In comparison with when police used tear gas and water cannons to clear Taksim Square on Tuesday night, the situation was calmer when thousands of protestors returned to the area yesterday. Although the demonstrators chanted anti-government slogans the riot police remained relatively passive.
The Lira briefly strengthened to 1.8595 against the US Dollar
And, although initially against the idea of meeting with protestors, Prime Minister Recep Tayyip Erdogan did discuss the demonstrators’ concerns with a group of their representatives last night.
Meanwhile, Turkish central bank Governor Erdem Basci asserted that the financial institution considers it a duty to intervene when the Lira exchange rate is volatile.
As forex strategist Bernd Berg notes: ‘The central bank is giving a strong message that it would do whatever it takes to stabilize the currency and prevent a currency crisis that would lead to a further loss of confidence among international investors’.
Similarly, industry expert Murat Toprak cited the following reasons for the Lira’s advance: ‘The political tensions have eased and the Turkish central bank has used the tools at its disposal. The combination of tighter Lira liquidity and selling Dollars has had a positive impact on the Lira.’
Current Turkish Lira (TRY) Exchange Rates
< Down > Up
The Turkish Lira/Pound Sterling Exchange Rate is currently in the region of: 0.3422 >
The Turkish Lira/Euro Exchange Rate is currently in the region of: 0.4006 >
The Turkish Lira/ US Dollar Exchange Rate is currently in the region of: 0.5358 >
The Turkish Lira/Japanese Yen Exchange Rate is currently in the region of: 51.3652 <
The Pound Sterling/ Turkish Lira Exchange Rate is currently in the region of: 2.9240 <
The Euro/Turkish Lira Exchange Rate is currently in the region of: 2.4892 <
The US Dollar/Turkish Lira Exchange Rate is currently in the region of: 1.8650 <
The Japanese Yen/Turkish Lira Exchange Rate is currently in the region of: 0.0195 >
(Correct as of 12:00 GMT)
Comments are closed.