- USD / TRY jumps near 8.8000.
- The CBRT surprised everyone by cutting rates to 18%.
The Turkish lira depreciated to lows almost all time against the US dollar and pushes USD / TRY to the 8.8000 zone Thursday.
USD / TRY moves higher after pessimistic CBRT
The USD / TRY rose rapidly to new highs after the Turkish central bank (CBRT) raised the one-week repo rate by 100 basis points to 18% against (almost) all the odds in Thursday’s meeting.
CBRT’s decision caught markets off guard despite the fact that the central bank announced in recent weeks that it could start setting the monetary policy rate based on core inflation, which is lower than the headline figure.
Key USD / TRY levels
At the time of writing, the USD / TRY pair is gaining 1.43% on the day, trading at 8.7680. A drop below 8.6056 (September 21 low), would target 8.4920 (55-day SMA) and 8.2590 (September 6 low). On the other hand, the next resistance is at 8.7965 (September 23 high), followed by 8.7974 (2021 high).
.
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.
