USD/TL Rate Started the New Week on a Downward Trend

USD/TL rate started the new week on a downward trend. Closing the previous week at 7.41 level, the exchange rate started Monday with a decline. The rate receded to 7.38 in the morning.

USD/TL rate was on a downward trent at the beginning of the week. After the interest rate decision announced by the CBRT on Thursday, the dollar/TL exchange rate, which completed the week at 7.4170, started the new week with a slight loss. In the first policy meeting of 2021, while keeping the weekly repo rate unchanged at 17 percent, it was stated that the tight stance will continue for a long time. On the other hand, credit rating agency S&P Global Ratings has reaffirmed the outlook on Turkey's credit rating on Friday. In the statement made by S&P Global Ratings, it was stated that the country's credit rating in foreign currency was confirmed as "B +" and the credit rating in local currency as "BB-". The credit rating outlook was recorded as "stable". On the first trading day of the week, the Turkish Lira traded at the level of 7.3794 against the US dollar and at the level of 8.9883 against the Euro at 10 am. The currency basket was recorded as 8.1836. The yield of the two-year Treasury bonds fell by 5 basis points to 14.7 percent in Turkey. The yield of 10-year dollar denominated Treasury bonds decreased by 1 basis point to 5.77 percent. The 5-year loan default swap (CDS) premium rose 6 basis points to reach 330 base points. BIST 100 Index in Borsa Istanbul started trading with a 0.92 percent premium on the first day of the new week, after closing last week at 1.551 points with 1.18 percent gain. According to the data announced by the Central Bank, the real sector confidence index reached to 107 in January. The previous month the index was recorded as 106.8.