TL Became the Most Valuable Currency of the Week

TL Became the Most Valuable Currency of the Week TL became the most valuable currency of the week. This week, the appreciation of the TL was recorded as 10 percent. Last week, the markets were expecting an interest rate hike from the CBRT. But the Central Bank of the Republic of Turkey (CBRT) In contrast to market expectations, did not increase the interest. When the rate hike decision did not come out at the PPK meeting, the rise in exchange rates climbed and broke its new record last week. However, the surprise changes experienced last weekend reversed the direction of the markets. While the dismissal of CBRT Chairman Murat Uysal and the appointment of Naci Ağbal as the head of the CBRT surprised the markets, the resignation of Treasury and Finance Minister Berat Albayrak created a shock effect on the markets. After these developments, while the exchange rates started to fall, President Erdoğan's emphasis on the 'new era in the economy' at the AK Party group meeting was reflected in the sharp decline in exchange rates. The Turkish Lira, which recorded the sharpest rise in recent years, was 10 percent against the dollar; It gained 12 percent against the euro. The dollar / TL rate, which returned all its earnings after the PPK meeting, fell to 7.61 levels on the last trading day of the week, while the euro / TL rate fell below 9.0 levels. On the other hand, with the risk premium falling below 400 bp, the upward trend of TL assets gained momentum and TL was recorded as the most appreciated currency of the week. In addition, the September industrial production and retail sales announced throughout the country today supported the positive progress of the TL. All eyes turned to the PPK meeting to be held next week on the last trading day of the week. The meeting is of great importance in terms of interest rate hike and announcement of new policies to be implemented. Since the current policy rate is below market funding, the market expects an interest rate increase of 400 bp and above. However, it is thought that the CBRT can make verbal guidance as well as an interest increase in its decision instead of making such an interest increase at once. In addition to all these, the positive atmosphere in TL assets is expected to continue in the pre-PPK environment.   Source: investing.com