The rise of the dollar above 34.20 TL continues…

//

Lerato Khumalo

The dollar exchange rate accelerated its rise above 34 TL. While the exchange rate started the new week at 34.26 TL, the euro started at 37.58 TL.

Data that alleviated recession concerns about the US economy and Borsa Istanbul’s entry into the bear market were effective in accelerating the dollar’s rise above 34 TL. Borsa Istanbul has fallen 10 percent since the last weeks of September. Meanwhile, US data, along with its impact on geopolitical developments, were effective in accelerating the rise of the dollar. The DXY Index, which measures the strength of the dollar against other currencies, has increased from 100 to 102.30 since October 1. The Dollar/TL exchange rate has gained 1.30 percent since mid-September.

Last week, CBRT President Fatih Karahan made a presentation at the Turkish Grand National Assembly on the latest situation in the economy and answered the questions of the members of parliament. Karahan said that the demand for TL deposits has increased here.

Karahan said, “Our job will not be finished until inflation reaches 5 percent.” Karahan emphasized that the declining inflation did not decline only due to the base effect, but also that monthly price increases remained lower.

The data agenda is busy this week. Industrial production, Market Participants Survey and Current Account deficit figures will be announced. The Market Participants Survey is monitored by the economic management to show how close the market’s expectations are to the MTP targets.

Internationally, US inflation will be announced on Thursday.