- USD / TRY rises to new all-time highs around the 8.53 level.
- All attention is on the US presidential elections.
- Turkey’s CPI rose 2.13% month-on-month and 11.89% year-on-year.
The Turkish lira remains in free fall and raises the USD/TRY to new all-time highs near 8.53 on Tuesday.
USD / TRY looks at US elections
USD / TRY extends the march north for another session, this time quickly leaving behind the 8.50 level and advancing to another record high amid the incessant selling pressure that hurts the Turkish currency.
Adding pressure to the lira, US polls continue to show a clear lead from Democratic candidate Joe Biden, who is expected to “punish” Ankara with sanctions after the purchase of the S-400 missile defense system.
Earlier in the session, the Turkish central bank raised the interest rate on lira swaps to 13.25% from 11.75% in another (futile) attempt to prevent the currency from further weakening (through higher financing costs for the TRY). The CBRT therefore continues to (stealthily) adjust monetary conditions by methods other than a direct rise in interest rates (of at least 500 bp).
On the domestic agenda, inflation figures in Turkey showed that the CPI rose to 2.13% and 11.89% monthly compared to the previous year.
Technical levels
At the moment, the pair is gaining 1.48% at 8.5292 and faces the next hurdle at 8.5294 (all-time high on October 30). On the downside, a drop below 7.7787 (Oct 22 low) would expose 7.6294 (Oct 1 monthly low) and finally 7.5082 (Sept 25 low).
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Credits: Forex Street
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