Lira hit a record low of 7.71 early Thursday. Risk of a balance of payment crisis looms large despite the emergency rate hike. While the Turkish Lira has recovered somewhat from the new record low reached early Thursday, the risks remain skewed to the downside. Lira is trading at 7.6737 per US dollar at press time, having hit a lifetime low of 7.71 an hour ago. The bounce could be attributed to oversold conditions, given the currency has declined by over 10% this quarter alone and nearly 30% this year. Moreover, Turkey still faces the risk of a full-blown balance of payment crisis. Indeed, the country’s central bank steeply raised interest rates from 13.5% to 16.5% on Wednesday. Even so, Lira fell by nearly 0.4% on Wednesday and reached new record lows today. The emergency rate hike seems to have conveyed panic to markets. “The central bank rate hike is seen off-limits,” popular macro analyst Holger Zscahepitz on Thursday. As such, the path of least resistance for Lira remains to the downside. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Japan PM Suga to S. Korea Pres. Moon: Cannot leave severe relations where they are now FX Street 1 year Lira hit a record low of 7.71 early Thursday. Risk of a balance of payment crisis looms large despite the emergency rate hike. While the Turkish Lira has recovered somewhat from the new record low reached early Thursday, the risks remain skewed to the downside. Lira is trading at 7.6737 per US dollar at press time, having hit a lifetime low of 7.71 an hour ago. The bounce could be attributed to oversold conditions, given the currency has declined by over 10% this quarter alone and nearly 30% this year. Moreover, Turkey still faces the risk of a full-blown balance… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
