Despite the US Dollar posting widespread gains yesterday following the publication of stronger-than-anticipated US consumer confidence, durable goods orders and new home sales figures, the Lira is still in line to achieve its strongest level against the ‘Greenback’ for five days.
At the current Exchange Rate one US Dollar is worth 1.9350 Turkish Lira as of 12:35 GMT
The Lira’s advance was inspired by the Turkish central bank’s intention to sell off Dollars for a fifth day.
By offering around 150 million Dollars at today’s foreign exchange sale the financial institution hopes to limit the currency’s volatility.
The Lira careening to Monday’s record low of 1.9602 against the US Dollar prompted the Central Bank of the Republic of Turkey to sell 300 million US Dollars already this week. Last week 400 million Dollars were sold.
The Lira strengthened to 1.9200 against the US Dollar (USD/TRY)
According to Istanbul-based strategist Tufan Comert, the Lira’s advance was triggered by the ‘calming of global markets and selling of Dollars by the central bank.’
However, in spite of today’s gains the Lira has still fallen by 2.7 per cent this month, partly as a result of the US stimulus news denting the appeal of emerging-market currencies and partly due to the political/social turmoil sweeping the nation.
While the dramatic scenes which dominated the Turkish news for over three-weeks have calmed slightly now, and political-risk assessors have lowered threat warnings, peace is still far from being restored.
Over the last week the controversial Turkish Prime Minister Recep Tayyip Erdogan has been encouraging his supporters to take to the streets in rallies designed to show demonstrators that he has the backing of the nation.
But Erdogan’s detractors won’t be deterred. As one young protestor commented: ‘Erdogan is here to destroy what Ataturk (legendary founder of the Republic of Turkey) built, but we won’t let him. We’ll fight against him and we will defeat him like Ataturk defeated his ancestors, who also wanted to continue their autocratic rule.’
Turkish economic data of interest due for release this week includes tomorrow’s consumer confidence figures and Friday’s balance of trade report.
Current Turkish Lira (TRY) Exchange Rates
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The Turkish Lira/Pound Sterling Exchange Rate is currently in the region of: 0.3362 >
The Turkish Lira/Euro Exchange Rate is currently in the region of: 0.3962 <
The Turkish Lira/ US Dollar Exchange Rate is currently in the region of: 0.5161 >
The Turkish Lira/Japanese Yen Exchange Rate is currently in the region of: 50.5394 <
The Pound Sterling/ Turkish Lira Exchange Rate is currently in the region of: 2.9766 <
The Euro/Turkish Lira Exchange Rate is currently in the region of: 2.5149 <
The US Dollar/Turkish Lira Exchange Rate is currently in the region of: 1.9350 >
The Japanese Yen/Turkish Lira Exchange Rate is currently in the region of: 0.0198 –
(Correct as of 12:35 GMT)
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