Turkish Lira Gained Value Against The US Dollar

The Turkish lira gained value against the US dollar. The Turkish lira led the appreciation in the currencies of developing countries.

The Turkish lira, which appriciated more than 4.5 percent against the USD this week, became the currency that gained the most value among the currencies of developing countries. The USD/TL exchange rate, which started the week around 8.66, gradually depreciated and fell to the level of 8.28.

Inflation in the USA Exceeded Expectations

Inflation in the USA exceeded expectations in May, reaching 5 percent on an annual basis and 0.6 on a monthly basis. Inflation last recorded these levels in August 2008. After the inflation data, the 10-year US Treasury bond yield fell to 1.43 percent with the biggest weekly loss in a year. The Turkish lira was the most appreciated currency among emerging market currencies this week, followed by the Mexican peso in second place and the Russian ruble in third place. The currency of the developing country, which lost the most value this week, was recorded as the Peruvian sol with 1.03%. Turkey's credit default risk premium (CSD) is advancing at 368 basis points, while the 2-year benchmark bond yield is hovering around 18.41 percent.