BIST Decreased 2.5% Dollar / TL Exceeded 6.17

BIST Decreased 2.5% Dollar / TL Exceeded 6.17

The USD / TRY rate, which has been rising for 6 weeks, has exceeded the level of 6.17 and continued its earnings until the 7th week. Both global and domestic developments are effective in the rise in exchange rates. With the US Dollar Index reaching the 100.0 level and seeing the peak of the last 4 months, all the developing country currencies decreased and the TL depreciated in this process. On the other hand, decreased risk appetite and demand for safe assets also suppressed the assets of the developing country. As the CBRT continued to cut interest rates in January and February, loan rates declined, while deposit rates also dropped seriously, which increased the demand for foreign currency. In addition, negative interest has an impact on the exit of investors. On the political side, the United States did not make any progress on the S400, while the disagreement with Russia on Idlib increased geopolitical risks. Regime forces were given time to withdraw from the region specified by the end of this month, and Russia is negotiating with the delegations during this period. High-level meetings are expected until March 5th. In this period with high global and domestic risks, BİST 100 fell below 113 thousand points, while USD / TRY rose to 6,1730, the highest level after May 10, EUR / TRY reached 6.77535, the highest level after 29 May and CHF / Reaching TRY 6.3540 (excluding an Asian session in August), it reached the highest level after September 27, 2018. The 5-year risk premium, which declined to 240 bp in January, was at 306 bp and the 2-year benchmark interest rate was 11.78%.