USD/TRY hits 15-week low
USD/TRY, which started to decline in parallel with depreciation in USD after the Federal Reserve didn’t specify an exact date to decrease asset purchases, continues to show a downward trend below 8.30. USD/TRY saw 8.25 yesterday, the lowest in 15 weeks.
TRY tends to appreciate as foreign exchange (FX) supply exceeds the demand nowadays, according to daily DUNYA columnist and Vice Rector of Piri Reis University Erhan Aslanoglu. “I expect another rise in TRY in the upcoming weeks. USD/TRY may hover around 8.50-9.00 in the last quarter. The course of the Central Bank’s monetary policy will considerably determine the dimension,” said Aslanoglu.
Permanence of USD/TRY below 8.35 is considered as a weak possibility under current conditions, according to Marbas Menkul Degerler Assistant General Manager Soner Kuru. He said inflation figures released today and the Central Bank’s policies to pursue will be determine the future of USD/TRY.
As of this morning, USD/TRY is traded at just above 8.31, while EUR/TRY hovers around 9.87.
Oil prices, meanwhile, are on the rise by the support of the weak course in USD and decrease in the U.S. crude oil stocks, which is above expectations. Brent crude rose by 0.1% to USD 73.10 per barrel.
Gold prices also increase with the impact of the weak course in USD, while investors await the non-agricultural employment figures in the U.S. for clues about the Federal Reserve’s plans to decrease asset purchases. Spot gold slightly rose to USD 1,813 per ounce.
The annual inflation surged by 19.25% in August, compared to the same month of the previous year, according to the Turkish Statistical Institute (TurkStat). The Consumer Price Index (CPI) rose by 1.12% on a monthly basis.
The Domestic Producer Price Index (D-PPI) jumped 45.52% in August, compared to the same month of the previous year, according to TurkStat. The D-PPI increased by 2.77% on a monthly basis.