The Lira took a pretty severe kicking this week as Fed Chairman Ben Bernanke reduced the appeal of emerging market currencies by intimating that the US central bank will soon begin to taper stimulus.
At the current Exchange Rate one US Dollar is worth 1.9273 Turkish Lira as of 11:30 GMT
But the Turkish central bank was quick to take action after the Lira plunged to a record-low of 1.95 against the US Dollar yesterday.
For a third day the financial institution lent the currency support by offering zero funding at its one-week repo auction. It also sold off US Dollars.
As a consequence the Lira was able to gain for the first time in five days and the nation’s bond yields jumped to their highest level for almost 12 months.
According to strategist Ali Cakiroglu: ‘The central bank’s policy steps are starting to slow the currency’s deterioration, which stems from global factors.’
The Lira to US Dollar Exchange Rate Advanced to 1.9297
Yesterday Turkey’s central bank sold off 350 million US Dollars, with another 50 million US Dollars being disposed of today.
This is the third time the bank has intervened to calm exchange rate volatility since the Turkish social unrest erupted in May.
The next significant piece of Turkish data to look out for is business confidence figures, due out on Monday at 12:30 GMT. Economists are expecting that the gauge declined from 112.50 to 110.62 in June.
Current Turkish Lira (TRY) Exchange Rates
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The Turkish Lira/Pound Sterling Exchange Rate is currently in the region of: 0.3351 >
The Turkish Lira/Euro Exchange Rate is currently in the region of: 0.3919 >
The Turkish Lira/ US Dollar Exchange Rate is currently in the region of: 0.5184 >
The Turkish Lira/Japanese Yen Exchange Rate is currently in the region of: 50.9511 >
The Pound Sterling/ Turkish Lira Exchange Rate is currently in the region of: 2.9859 <
The Euro/Turkish Lira Exchange Rate is currently in the region of: 2.5538 <
The US Dollar/Turkish Lira Exchange Rate is currently in the region of: 1.9273 <
The Japanese Yen/Turkish Lira Exchange Rate is currently in the region of: 0.0196 <
(Correct as of 11:30 GMT)
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