TL Increases Its Loss Against the US Dollar to 2 Percent

TL increases its loss against the US dollar to 2 percent. The decline in risk appetite brought about an increase in the USD/TL exchange rate.

While the high progress of bond yields in global markets decreased the risk appetite, which increased with the approval of the US Senate's stimulus package, the USD/TL started the new week quickly. In parallel with this, the loss of the Turkish Lira against the US dollar reached 2 percent. On the first trading day of the new week, the USD/TL rate tested 7.70. While it was observed that S&P 500 futures in global markets went from plus to minus, the US dollar also appreciated. The US 10-year bond interest continued to be at 1.60 percent. Last week, with the effect of the increase in US bond yields, the exchange rate rose above 7.58, recording its highest level since December 2020. Societe Generale analysts showed Turkey, along with South Africa, Hungary, Chile and Colombia, among the most vulnerable countries in their report evaluating the impact of bond yields on emerging markets.   Turkey's Risk Premium at the Highest Level of 2021 Turkey 's risk premium was trading at 341 basis points, while the two-year benchmark bond rate was 16.01 percent. This point seen in the risk premium was recorded as the highest level of 2021.