Appreciation in TRY continues. USD/TRY dropped by 1% and tested below 8.35 while EUR/TRY declined nearly by 1% to 9.90 yesterday. TRY differentiated among EM currencies in July with a nearly 3% premium.
Analysts say that the global weak course of USD was determinative in TRY’s valuation, while the Central Bank Governor Sahap Kaviocglu’s messages that the bank will not cut the interest rate in the short term was an important development. Increasing need of TRY cash due to the long 9-day holiday, improvement expectations in tourism incomes and forecasts to support the recovery trend of the current account deficit positively affected TRY, according to analysts.
However, there is a slight increase in foreign exchange rates this morning. USD/TRY is traded at 8.35, while EUR/TRY sees 9.93.
Spot gold, which approached to USD 1,840 per ounce in July after it sharply fell in June, declined by 0.22% to USD 1,809 per ounce due to the high risk appetite. Brent crude also decreased by 0.33% to USD 72.65 per barrel.
The annual inflation surged by 18.95% in July, according to the Turkish Statistical Institute (TurkStat). The Consumer Price Index (CPI) increased by 1.80% in July compared to the previous month.
The Domestic Producer Price Index (D-PPI) rose by 44.92% in July, compared to the same month of the previous year, according to TurkStat. The D-PPI increased by 2.46% on a monthly basis.
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