USD/TL rate Hits the Highest of the Last 2.5 Months
USD/TL rate hits the highest of the last 2.5 months. The volatility in the bond interest was reflected as an increase in the dollar exchange rate.
After the increase it recorded last week, the USD/TL exchange rate, which opened this week with a decrease, fell 2 percent at the beginning of the week and fell to 7.22. But the exchange rate could not sustain this decline. Currencies of developing countries have lost as a result of the continuing activity in the US 10-year bond yields this week.
The US dollar rate, which dropped to the level of 7.41 during the day yesterday, rose to 7.58 after the statements of FED President Powell and reached the highest level after December 25.
US Federal Reserve (FED) Chairman Jerome Powell stated that they do not expect a permanent rise in spite of rising inflation expectations in the markets and therefore they will not be in a hurry to tighten the monetary policy. Reiterating that the employment market, which has deteriorated due to the coronavirus epidemic, is the main actor in the policy process, Powell noted that returning to full employment this year is very difficult. Powell gave positive signals as much as possible, but this time the markets ignored Powell’s words and continued to price the rise in inflation. With the rise in bond yields yesterday, the US Dollar Index reached its peak in the last 3 months. The US dollar appreciated in global markets and the Euro/USD fell below 1.20. The pair fell to 1.1915 today, the lowest level since November 27.
With the rise in the US dollar, the dollar exchange rate, which reached above 7.58 yesterday, is trading at 7.52 today. The exchange rate, which regained its annual losses with its rapid rise last week, also gained 1 percent annual premium with this week’s rise. Euro/TL exchange rate is below 9.0 after rising to 9.07. The exchange rate is falling close to 2 percent on an annual basis.