- USD / TRY again pressures higher after finding support at 7.70
- No announcements at the moment from the Central Bank of the Republic of Turkey.
The Turkish lira remains on the defensive and once again shows itself weakly. This added to the strength of the dollar in the market is leading the USD / TRY towards the 8.00 zone.
USD / TRY advances for the second consecutive session. On Monday the week had started with a large bullish gap, close to 8.50, after the replacement of the head of the Turkish central bank. The retracement from that level extended to the 7.70 area, where USD / TRY rebounded, picking up again.
The price is at 7.87, a rise of 1.05% for the day. On Tuesday the lira is among the worst performing currencies but it is not the one that falls the most, a place occupied by the Russian ruble. Even the kiwi (NZD) loses more ground.
The changes of authorities in the central bank point to a change in the bank’s policies, towards lower rates and a greater tolerance for inflation. This could aggravate the balance of payments crisis and favor capital outflows. This has led most analysts to expect a depreciation of the lira in the future.
If this expectation is confirmed, it would be a matter of time for the USD / TRY to return above 8.00 and to the 8.50 area. Traders are waiting for announcements from the monetary authority, which could be delayed until the tensions subside.
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