The Lira dropped to 1.8834 against the US Dollar during local trade after Prime Minister Recep Tayyip Erdogan got vocal.
At the current Exchange Rate one US Dollar is worth 1.8840 Turkish Lira, as of 16:15 GMT
Although various factions have criticised the overzealous reaction of police regarding the demonstrations dominating Turkish headlines for the past three weeks, Erdogan pledged today that the police response would be strengthened.
In a rather accusatory statement Erdogan levelled the blame for the recent unrest on ‘certain capital groups, the interest rate lobby and certain organisations inside and outside’ Turkey.
He went on to specifically mention the main opposition party, and imply that they had played a part in inciting the ‘conspiracy’ protests.
The Lira briefly weakened to 1.8890 against the US Dollar
In other Turkish news, the Central Bank of the Republic of Turkey opted to keep its three main interest rates, the benchmark one-week repo rate and the overnight lending/borrowing rates, at their previous respective levels of 4.5 per cent, 6.5 per cent and 3.5 per cent when it met today.
The decision was anticipated by economists.
After Erdogan’s speech one ING strategist stated: ‘The yields were already up before the rates decision as political tension lingers […] The lira has depreciated with the market reacting negatively to Erdogan’s comments.’
With further domestic economic news thin on the ground this week additional Lira movement is most likely to be caused by developments in the US and the ongoing Turkish social troubles.
Of particular interest is the Federal Reserve’s Open Market Committee meeting, which concludes tomorrow.
If the Fed intimates that it intends to rein in stimulus in the near future significant market volatility can be expected to follow.
Current Turkish Lira (TRY) Exchange Rates
< Down > Up
The Turkish Lira/Pound Sterling Exchange Rate is currently in the region of: 0.3402 >
The Turkish Lira/Euro Exchange Rate is currently in the region of: 0.3973 <
The Turkish Lira/ US Dollar Exchange Rate is currently in the region of: 0.5304 <
The Turkish Lira/Japanese Yen Exchange Rate is currently in the region of: 51.3985 >
The Pound Sterling/ Turkish Lira Exchange Rate is currently in the region of: 2.9416 <
The Euro/Turkish Lira Exchange Rate is currently in the region of: 2.5205 >
The US Dollar/Turkish Lira Exchange Rate is currently in the region of: 1.8840 >
The Japanese Yen/Turkish Lira Exchange Rate is currently in the region of: 0.0195 <
(Correct as of 16:15 GMT)
Comments are closed.