USD/TRY leaps to 3-day highs around 9.6000
28.10.2021, 09:32

USD/TRY leaps to 3-day highs around 9.6000

  • USD/TRY reverses the recent weakness and advances to 9.60.
  • The lira loses ground following comments by CBRT Governor.
  • Turkish markets will close earlier due to the Republic Day holiday.

The downside pressure accelerates around the Turkish lira and motivates USD/TRY to regain upside traction and advance past the 9.60 level to clinch new 3-day highs on Thursday.

USD/TRY keeps targeting the 10.00 yardstick

After three consecutive daily pullbacks, USD/TRY rebounds from weekly lows near 9.4000 and retakes the 9.6000 mark and above against the backdrop of a strong bout of selling interest hitting the lira.

Indeed, sellers continue to hit the Turkish currency after CBRT officials said that core inflation indicators are expected to lose traction in the near term. In addition, officials stressed that the current tight monetary policy conditions (wait, what?) will remain in place to ensure a drop in inflation as soon as possible.

Still around the CBRT, Governor S.Kavcioglu said that the reversion of the ongoing (and never-ending) dollarization process will mitigate pressure on the exchange rate, while he noted that the inflation target (5%) still remains in place.

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USD/TRY key levels

So far, the pair is gaining 1.27% at 9.6032 and a drop below 9.4128 (weekly low Oct.26) would aim for 9.1965 (weekly low Oct.21) and finally 9.1952 (20-day SMA). On the other hand, the next up barrier lines up at 9.8395 (all-time high Oct.25) followed by 10.0000.

 

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