USD/TL Reached An All Time High

While the dollar rose with the news flow of US President Joe Biden's incentive package preparation, the USD/TL rate climbed to an all-time high.

USD/TL reached an all time high. Following US President Joe Biden's announcement about the massive stimulus package preparations, US dollar appreciated, while the USD/TL exchange rate climbed to an all-time high, reaching above the previous peak of 8.5793. The USD/TL rate, which rose to 8.5439 with the arrival of the news on Thursday, reached the level of 8.59 in Friday's transactions. The Turkish lira took the lead in negatively diverging currencies against the US dollar, along with the South African rand. Following the news flow of Biden's massive stimulus package, the US 10-year bond yields increased by more than 1.61 percent, while the Bloomberg Dollar Index increased by 0.2 percent. While US weekly unemployment wage claims decreased to their lowest level since mid-March 2020, according to data released on Thursday, economic growth, supported by the comprehensive aid package, grew by 6.4 percent in the first three months of the year. The rapid recovery of the US economy has become more and more supportive of the expectation that the support given to the economy through monetary policy, especially the US Federal Reserve (Fed), will begin to withdraw before the estimates. While this period caused sales pressure across the currencies of developing countries, the Turkish Lira was also affected. Turkey's risk premium is trading above 400 basis points. In addition, the benchmark interest rate is at the level of 18.78 percent.