Forex

USD/TRY Outlook As Turkish Keeps Sinking

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Written By: Abdullah Sarwar
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    Summary:
  • The ascent of TRY/USD is decelerating due to the record rate interest rates in Turkey. However, the trend remains in dollar's favor.

It appears that nothing is working in favor of the Turkish Lira as the USD/TRY is set to close another green month. This will mark the 3rd consecutive month of decline for the lira against the US dollar.

What is even more concerning is the fact that even a major pullback in the dollar strength index has failed to stop the bleeding of lira. As a result, the dollar to lira exchange rate has continued its ascent despite record-high rates in the country.

While the recent measures from the Turkish central bank and the government have been unable to stop the decline in Lira, they have still slowed down its descent against the greenback.

After this week’s rate hike of 500 bps, the interest rates in Turkey have hit a record high of 40%. Such a high interest rate may lure investors into buying back the lira, but this may take some time to take effect.

The following chart shows that while the USD/TRY pair surged 37% from May to August, it only rose 12% from September till now. This suggests that the high interest rates have given the lira much-needed support.

Dollar To Lira Chart

This post was last modified on Nov 24, 2023, 16:44 GMT 16:44

Written By: Abdullah Sarwar

Abdullah Sarwar is a blockchain analyst and a cryptocurrency investor with more than 5 years of experience. He specializes in providing crypto price projections based on their fundamentals and price charts. He is also a successful day trader. He graduated in 2015 with a degree in electronic engineering. In his free time, he loves listening to electronic music and playing with trading bots.

Published by
Written By: Abdullah Sarwar