TL Continues To Rise After Interest Rate Decision
Turkish Lira continues to rise after the interest rate decision of the Central Bank of the Republic of Turkey.
TL continues to rise after the interest rate decision. After the CBRT announced its decision to increase the interest rate above expectations, the Turkish Lira, which gained value rapidly, started with a decrease to the last trading day of the week after the decision. In the ongoing part of the session, it was seen that TL appreciated against the US dollar.
While the theme of inflation concern, which has come to the fore again in global markets, puts pressure on the assets of the developing country with risky assets, TL fluctuates on the first trading day after the interest rate decision of the
Central Bank of the Republic of Turkey.
Later in the session, Turkish Lira gained value. However, the
USD/TL exchange rate fell below 7.27.
After the CBRT announced an increase of 200 basis points, the rate of USD/TL exchange rate fell below the level of 7.29, while the exchange rate rose above 7.35 in the first transactions on the last day of the week. Bloomberg Dollar Index, on the other hand, displayed a horizontal outlook.
The risk premium, which declined after the decision, was traded at 307 basis points, while the benchmark bond interest rate was at the level of 16.36 percent.