Strengthened USD Puts Pressure On The TL

Strengthened USD puts pressure on the TL. The Turkish lira has been falling against the US Dollar since the start of the week.

The USD/TL exchange rate, which started the week at 8.30, rose 0.69 percent and reached the level of 8.35. The 10-year US Treasury bond yield stood at 1.60 percent. While the real value of TL recorded its lowest levels in April, HSBC Portfolio Chief Economist İbrahim Aksoy stated that due to the increase in commodity prices and problems in the supply chain, an increase in the USA 10 year bonds and inflation may be seen. Aksoy said, "While the rise in commodity prices and disruptions in the supply chain increase the costs of companies in the US, some companies are getting statements that they will increase their product prices. It should be noted that the S&P Goldman Sachs Commodity Index rose by 26.1% from the beginning of the year. Which points out that the US 10-year bond rate could rise further. " Aksoy drew attention to the fact that the TL may continue to weaken for the rest of the year due to the current deficit source of foreign currency, the decline in real interest rates and the risks of US inflation. On the other hand, US Treasury Secretary Janet Yellen's statements on the interest rate hike caused fluctuations in the USD/TL exchange rate. Yellen said in a statement yesterday morning that there could be a moderate rate hike to prevent overheating in the economy due to the size of President Joe Biden's spending package. Later, to clarify the matter, Yellen said, "This is not something I expect or recommend. I care about the independence of the Federal Reserve."