Turkish Lira Started to Recover its Losses

Turkish Lira started to recover its losses. New records were broken on the days when domestic markets were closed due to the public holiday.

The Turkish Lira, which depreciated during the Ramadan holiday, started to recover on the first trading day of the new week. The USD/TL Exchange rate, which started the week at the level of 8.46, fell below 8.40. Turkey's risk premium was traded at 403 basis points, while benchmark bond interest was at 17.94 percent. Last week, when the domestic markets were closed for half of the week, the USD/TL Exchange rate closed at 8.4510 with an increase of 2.55 percent. On Friday, the basket rate exceeded 9.40, hitting an all-time high. On the other hand, Euro/TL rate exceeded 10.30 during the period when domestic markets were closed and refreshed its record. Domestic markets were closed from midday to Wednesday, May 12, due to the Ramadan Feast. Meanwhile, US inflation formed the agenda of global financial markets. Data released in the US on Wednesday showed that consumer prices rose 0.8 percent month-on-month, the fastest since 2009, exceeding expectations in April. The core CPI in the country also increased by 0.9 percent monthly, the fastest increase since 1982. In the USA, where coronavirus vaccination continues rapidly and restrictions have begun to be lifted, hotel accommodation fees, second-hand vehicle prices and flight ticket prices have increased at a record level.