USD/TRY approaches 11.0000 post-CBRT, new all-time highs
18.11.2021, 11:34

USD/TRY approaches 11.0000 post-CBRT, new all-time highs

  • USD/TRY jumps to new record tops near the 11.0000 level.
  • As expected, the CBRT reduced rates by 100 bps.
  • The central bank said a further cut is likely in December.

The Turkish lira fell off the cliff and pushed USD/TRY to new all-time peaks in levels just shy of the 11.0000 mark on Thursday.

USD/TRY in fresh tops on CBRT

The lira depreciated to the boundaries of 11.0000 the figure vs. the greenback after the Turkish central Bank (CBRT) cut the One -Week Repo Rate by 100 bps to 15.00% at Thursday’s meeting, matching the broad consensus.

In its statement, the central bank noted that the firm external demand collaborated with the strong recovery in the domestic economy, adding that the vaccination campaign helped the recovery in the services sector and tourism.

The bank blamed the supply disruptions and higher energy and import prices when it comes to justify the elevated inflation and expects these factors to persist at least through the first half of 2022.

In addition, the CBRT suggested it might reduce the policy rate further at the December meeting.

USD/TRY key levels

So far, the pair is gaining 1.90% at 10.8319 and a drop below 9.8485 (high Oct.25) would expose 9.8286 (20-day SMA) and finally 9.4722 (monthly low Nov.2). On the other hand, the next up barrier lines up at 10.9808 (all-time high Nov.18) followed by 12.0000 (round level).

 

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