1 USD to TRY - USD to TRY Exchange Rate
What's happening in Turkey? Why did the dollar increase? The dollar witnessed a rapid surge during night time. Here are the curious answers...
Why is the dollar rising?
After the dollar rose to 8.44 TL during dry night hours, it fell to 8.38 first and then to 8.34.
The dollar, which started the new day around 7.85, witnessed a rapid fluctuation at night like other developing country currencies.
So why is the dollar rising? Here are the curious answers ...
Why did the dollar increase?
After the Turkish Lira market closed inside, the fluctuation degree in the Turkish Lira was faster than other competitors due to the narrowing of the liquidity in the market.
In fact, this situation occurred due to the sudden increase in US bonds after the inflation doubts in the USA.
In global markets, Fed Chairman Jerome Powell's statements were not enough to resolve these doubts and concerns.
The rate reached the level of 8.44 at 21:16.
While the Turkish Lira lost its value by 3.8 percent at this level, the Mexican peso and the South African rand also lost value like the Turkish lira.
However, the movement in the Turkish Lira was slightly more than the rates in other markets. Then the loss was between 3.2 and 3 percent.
South African Rand lost 3.3 percent. Similarly, this loss was seen in the Mexican Peso. Peso also lost 2.2 percent against the dollar.
Brazilian Real lost 2 percent value. The Russian Ruble also lost about 2 percent in value. The Turkish Lira is said to be large fluctuations in the situation in Turkey's recent foreign exchange reserves is an important issue and the recent correction took place due to the effect of increased foreign investment on the market.
While it is estimated that the increase in 10-year US Treasury bond interest rates may cause sales in relatively risky assets such as stocks, after gold,
it also depreciated emerging market currencies. Because the rising inflation in the USA has accelerated the expectations for a rate hike.
US Treasury bond interest rates have increased by 28 percent since the beginning of February, while gold prices have lost almost 3 percent over the same time period.
10-year bonds in the US have recently reached the level of 1.50. Covid-19 pandemic and vaccine advances are also on developing countries in markets.
While increasing the intensity of the pressure found, Fed Chairman Jerome Powell's statements the previous day could not stop the increase in the dollar's interest rate.
Powell announced the forecast that inflation will hover below 2 percent this year. However, bond yields continued to increase.
Because it is expected that the US inflation will increase even more with the rise in food prices.
All these developments strengthen the estimation that the US Federal Reserve rate, which is 0.25, will increase more soon.
What has happened in Turkey?
The dollar had entered February at 7.30. Turkey's risk premium of 293 bps While the transaction, the benchmark bond yield was 14.92 percent.
The dollar / TL exchange rate, which started the week around 7.01, saw above 7.24 on Wednesday.
After all these advances, the Central Bank net reserve debate between the CHP and the government attracted the attention of investors.
While the gross reserves of the CBRT are at the level of 95 billion TL, its negative net status is one of the most important factors that weaken the place of TL in global movements.
This is because the reason why the Turkish Lira lost the most value in the last fluctuation was attributed to this.
LOSS OF VALUE IN TURKISH LIRA
After the dismissal of Central Bank President Naci Ağbal, the Turkish Lira entered the day with a 17 percent loss in value.
The dollar / TL rate, which finished the week at 7.20 levels, passed around 8.40 in international markets in the first hours of Monday.
In the early hours of the day, the exchange rate, which was fixed between the 8 and 8.10 band, declined to the level of 7.90.
While sales increased after its opening in the stock market, transactions were temporarily suspended.