UBS Shared Its New USD/TL Forecast

UBS shared its new USD/TL forecast. The institution revised its USD/TL exchange rate forecast upwards.

UBS increased its USD/TL forecast, taking into account the increasingly hawkish stance of the FED (US Federal Reserve), the current account deficit and the ongoing epidemic risks. UBS stated that the uncertainties in the monetary policy path may cause further depreciation and increased its year-end USD/TL forecast to 9.30 from 9.00. According to the research report prepared by UBS Analyst Tilmann Kolb, the USD/TL forecast was increased from 8.80 to 9.00 at the end of the third quarter of 2021, while the forecast for the second quarter of 2022 was increased from 9.40 to 9.70. Stating that the increasing hawkish stance of the FED, the current account deficit and the ongoing epidemic risks also worsened the outlook for the Turkish lira, UBS also stated that the main developments in policy making could support the TL.