- USD/TRY tests new weekly lows near 13.30 on Thursday.
- The CBRT leaves the one-week repo rate unchanged at 14.00%.
- The CBRT says that the available monetary policy instruments prioritize the Turkish lira.
The Turkish lira is gaining additional traction and is now dragging the pair USD/TRY to new weekly lows in the region of 13.2500/2000 Thursday.
USD/TRY weaker after BCRT unchanged
The pair USD / TRY is falling for the second day in a row, as the lira remains firm against the US dollar following the decision of the Turkish central bank (CBRT) to leave the one-week repo rate unchanged at 14.00% at their meeting on Thursday. This is the first time the central bank has kept the monetary policy rate unchanged since August.
The CBRT statement has shown that the central bank “blame” “unhealthy price formations” in the forex space, disruptions to supply and demand developments for (very) high inflation.
Furthermore, the CBRT has said that it will prioritize the lira when it comes to the monetary policy framework and has reiterated the will to reach the mid-term inflation target of 5% y/y.
USD/TRY Key Levels
At time of writing, the USD/TRY pair is down 0.21% at 13.3480. A drop below 12.7523 (3rd Jan low), would pave the way for a test of 12.6123 (55-day SMA) and 10.2027 (23rd Dec low). On the other hand, the next resistance is found at 13.9319 (10th Jan high), followed by 18.2582 (20th Dec high) and then 19.0000 (round level).
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
