Lira accelerates gains against dollar

US dollar bill and Turkish lira banknotes close up image. USD to TRY - Görsel
Lira accelerates gains against dollar

Dollar assets, which started the new week as falling after the weak employment report announced in the USA, increased the gains in Turkish lira. Some recession signals for the U.S. economy outlook and the increasing expectations on Fed’s interest rate cuts in the markets continues to have an impact on pricing. But Goldman Sachs announced that Fed would not cut rates this year; and this statement was important. “Although it is a close call, we still expect the FOMC to keep the funds rate unchanged in the remainder of the year,” says Jan Hatzius, the bank’s chief economist. The currencies of the developing countries maintain their positive course due to the tension created by the interest rate cut scenario on the Dollar. Turkey 5 year CDS which fell back to 463 level accelerated the gains of Turkish lira. In addition, the news regarding the F-35 creates a pressure on the Turkish lira. Also, the Central Bank of the Republic of Turkey will hold tomorrow Monetary Policy Committee meeting; the rate decision will be closely monitored in terms of the pricing USDTRY. The parity is at around above 5.75 level.