Euro/TL Exchange Rate Peaked!

Euro/TL Exchange rate peaked! The Euro / Turkish Lira rate reached an all-time high of 10.3203.

Euro/TL exchange rate started the week at 10.26, then reached 10.3203 on Tuesday, hitting the all-time high. The USD/TL exchange rate fluctuates around 8.40 on Tuesday, after reaching the level of 8.43 on Monday. Following the comments of the FED officials on inflation, the US Treasury bond interest and the US dollar index fell, while the currencies of developing countries increased except for the Philippine Peso and Turkish Lira. The 10-year US Treasury bond yield started the week at 1.62 percent, and fell gradually to 1.58 percent on Tuesday. The currencies of developing countries started to increase, finding support from the dollar index and bond interest rates, following the FED's comments. The currency that rose the most during the day was the Bulgarian Lev with 0.56 percent, followed by the South Korean Won. The Turkish Lira, on the other hand, was recorded as the currency that lost the most value against the US dollar on Tuesday among the currencies of the developing countries.

FED Gave Dovish Messages

FED politicians' evaluations about inflation played a role in the fall of the dollar and the recent fall in the US Treasury bill rate. FED Member Lael Brainard predicted that short-term price pressures would decrease after the supply shortages were overcome, and said that his long-term expectations were "very well anchored". Brainard stated that FED members have the tools and experience to bring inflation down again if it goes above the target.