USD/TRY flirts with all-time highs near 9.8400
10.11.2021, 10:26

USD/TRY flirts with all-time highs near 9.8400

  • USD/TRY extends the advance and challenges all-time highs.
  • The stronger dollar helps the pair to regain upside traction.
  • Markets’ attention now looks to the CBRT meeting next week.

The Turkish lira accelerates losses and lifts USD/TRY to the area of all-time highs around 9.8400 on Wednesday.

USD/TRY closer to 10.0000

USD/TRY advances for the second session in a row on Wednesday on the back of the better note surrounding the US dollar and the persistent depreciation hitting the Turkish currency.

Indeed, the lira remains under heavy pressure and the selling pressure has intensified as of late following rumours that the Treasury and Finance Minister L.Elvan had offered his resignation in past days.

Despite these rumours were later denied, the sentiment surrounding the lira looks increasingly fragile to say the least and could deteriorate further ahead of the next monetary policy meeting by the Turkish central bank (CBRT) due on November 18.

in the domestic docket, the Unemployment Rate in Turkey eased to 11.5% in September (from 12.1%).

On the latter, it is worth recalling that the CBRT reduced the One-Week Repo Rate by 300 bps since September in a context of surging inflation and a firm outlook when it comes to the economic recovery.

USD/TRY key levels

So far, the pair is gaining 0.89% at 9.8138 and a drop below 9.5146 (20-day SMA) would expose 9.4722 (monthly low Nov.2) and finally 9.4128 (weekly low Oct.26). On the other hand, the next up barrier lines up at 9.8395 (all-time high Oct.25) followed by 10.0000 (psychological level).

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