Turkish Lira Continues to Gain Value

After the inflation data announced in the USA and the results of the bond auction, the Turkish Lira started to gain value.

Turkish Lira continues to gain value. While US inflation data and bond auction results have alleviated inflation concerns that have put pressure on risky assets over bond yields for a while, developing country currencies have begun to appreciate against the US dollar. The Turkish Lira was also positively affected by this move. While the Turkish Lira appreciated against the US dollar, this gain continued on the new day. The pair saw again below the 7.50 level. Thus, the rise of the Turkish lira against the US dollar in the last 3 days has exceeded the level of 3 percent. This week, 7.78 levels were tested in the USD/TL exchange rate. TL moved in parallel with the currencies of developing countries. Following the CPI and the auction results, which relieved the markets a little in the USA, only 3 of the 24 developing countries currencies followed by Bloomberg regressed against the US dollar in the first transactions in the new day. There is a horizontal movement in the Bloomberg Dollar Index, which has declined for the previous two days. Turkey's risk premium is traded at the level of 331 basis points, while the benchmark bond interest is at 16.31 percent.