Time: 16:39 – The dollar lost strength in the US as consumer prices came within expectations and core inflation remained below expectations. The exchange rate, which started at 35.50 TL today, decreased to 35.47 TL after the data. Euro rose to 36.72 TL.
Producer prices in the USA The producer price index (PPI) in the USA increased by 3.3 percent annually in December. The monthly increase was also below expectations, at 0.2 percent. As this data showed that the increase in inflation would slow down, the dollar lost power against global currencies. DXY Index, which shows the strength of the dollar against other currencies, fell to 109.09.
The US consumer price index will be announced today. Expectations are for a limited monthly increase of 2.9 percent. Consumer prices were at 2.7 percent in November.
The monetary policy implemented by the CBRT continues to reduce borrowing costs. In the analysis published by the CBRT yesterday, it was stated that the effect of the tight monetary policy stance on reducing borrowing costs was examined in the context of the re-issuance auctions of the Ministry of Treasury and Finance.
While the policy rate is currently 47.5 percent, the consumer price index is at 44.38 percent. This increases the demand for TL assets.
Today, President Recep Tayyip Erdoğan’s speech at the AK Party Group Meeting will be followed. On the other hand, budget balance figures will also be announced.