USD/TL Exchange Rate Broke A Record Today

USD/TL exchange rate broke a record today. USD/TL exchange rate reached above 8.97 today on October 8.

USD/TL reached 8.9728 ahead of US non-farm employment data. Before the non-farm employment data, a general decline was observed in emerging market currencies, while the Turkish lira was the currency that lost the most value with a decrease of more than 1 percent. Employment is at the top of the data that the FED (US Federal Reserve) focuses on for the asset purchase reduction calendar. Fed Chairman Jerome Powell has signaled that a reduction in asset purchases could begin this year as the job market shows a remarkable improvement. It is stated that the beginning of the reduction in asset purchases and the increase in interest rates in the USA may cause an increase in the pressure on the currencies of developing countries. The 10-year US Treasury yield rose to 1.59%, while the Bloomberg Dollar Spot Index stood at 1.165. Turkey's credit default risk premium (CDS) hovers around 438 basis points. It was reported that the news of Reuters, which states that President Recep Tayyip Erdoğan's confidence in CBRT Governor Şahap Kavcıoğlu has decreased, also had an impact on market pricing. The Central Bank of the Republic of Turkey (CBRT) held its first meeting with investors after the interest rate cut. During the meeting, CBRT Governor Şahap Kavcıoğlu said that they did not put inflation into the background, and stated that it is not possible to control supply shocks through the interest rate channel.