USD/TRY recedes from all-time highs past 11.0000
18.11.2021, 14:57

USD/TRY recedes from all-time highs past 11.0000

  • USD/TRY clinches new all-time high around 11.2800 on Thursday.
  • The lira reclaimed some ground lost soon after record low.
  • The CBRT could reduce rates further in December.

After hitting fresh all-time peak around 11.2800 earlier in the session, USD/TRY gave away part of those gains and now returns to the 11.0000 neighbourhood.

USD/TRY still poised for extra upside

USD/TRY remains on track to close the third consecutive week with gains along with eight sessions in a row closing in the positive territory. Actually, the lira is the worst performing EM currency, having shed already around 33% so far this year vs. the US dollar

The Turkish currency accelerated its losses to levels well north of the 11.0000 barrier after the Turkish central bank (CBRT) matched forecasts and reduced the One-Week Repo Rate by 100 bps at its meeting, taking the policy rate to 15.00%.

The outlook for the currency remains well on the negative side and further losses stay well on the cards, particularly considering that the CBRT suggested that another interest rate cut could be on the table as soon as in December.

USD/TRY key levels

So far, the pair is gaining 3.14% at 10.9447 and a drop below 10.0688 (high Oct.25) would expose 9.8219 (20-day SMA) and finally 9.4722 (monthly low Nov.2). On the other hand, the next up barrier lines up at 11.2792 (all-time high Nov.18) followed by 12.0000 (round level).

 

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