The downtrend in the lira remains well and sound for yet another session and pushes USD/TRY to daily highs near 9.7500 just to shed some ground soon afterwards.
USD/TRY advances for the fourth consecutive session at the end of the week and trades a tad lower than Thursday’s weekly peaks past the 9.7600 mark.
The solid rebound in the dollar has been weighing heavily on the risk-linked assets and sponsoring the exodus from the EM FX space as of late, and particularly after the FOMC finally announced the start of the tapering process at its meeting on Wednesday.
On the lira side, rumours of the death/illness of President Erdogan have been quickly reversed by officials in Turkey, although the impact on the FX was marginal, if any at all. The currency, in the meantime, remains mired into the negative territory amidst the usual fragile backdrop and following another uptick in consumer prices during October published earlier in the week (+19.89% YoY).
So far, the pair is gaining 0.23% at 9.7088 and a drop below 9.4722 (monthly low Nov.2) would aim for 9.4128 (weekly low Oct.26) and finally 9.1965 (weekly low pre-CBRT meeting Oct.21). On the other hand, the next up barrier lines up at 9.7657 (monthly high Nov.4) seconded by 9.8395 (all-time high Oct.25) and then 10.0000 (psychological level).
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