The Turkish lira hit a record low against the U.S. dollar on the back of a better-than-expected U.S. fourth quarter Gross Domestic Product figures Friday
A rising dollar index and a dispute between Turkey’s Central Bank and government officials bring value of Turkish lira to fresh lows!
The Turkish lira hit a record low against the U.S. dollar on the back of a better-than-expected U.S. fourth quarter Gross Domestic Product figures Friday. The U.S. dollar index, a measure of the dollar against a basket of major currencies, secured its position with positive fourth quarter GDP data after it climbed to a five-week high on U.S. inflation and production figures.
With U.S. dollar index reaching a five-week high against major currencies and an ongoing dispute in the country, Turkish lira dipped almost two percent against the U.S. dollar. The Turkish lira starting the day at 2.5040 levels sunk to a new record low against the U.S. dollar with the USD/TRY rate dipping to 2.5274 in early afternoon.
The intensifying row between government officials and Central Bank of Turkey over interest rates was also an unsettling event for Turkish markets’ sentiment. Following the sharp fluctuations in rates, The Turkish Central Bank announced that the amount of foreign exchange sold at auctions will be set on a daily basis depending on the conditions in the foreign exchange market.