USD/TRY records fresh all-time highs near 7.67, CBRT in sight

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  • USD/TRY clinches new all-time highs just below 7.67 on Tuesday.
  • Turkey’s Consumer Confidence ticked higher to 82.0 in September.
  • Rumours of a potential rate hike by the CBRT keep rising.

The continuation of the selling pressure around the Turkish lira lifted USD/TRY to clinch fresh all-time highs in levels just shy of the 7.67 mark earlier on Tuesday.

USD/TRY now looks to CBRT

USD/TRY is prolonging the upside momentum in the second half of the week as the offered bias in the lira remains everything but abated for yet another session.

Indeed, market participants remain heavy sellers of the lira amidst rising and divided opinions regarding the probable move (if any at all) by the Turkish central bank (CBRT) at its meeting on Thursday.

It is worth recalling that the selling impetus in TRY picked up extra pace particularly after ratings agency Moody’s downgraded the country’s sovereign debt to “junk” and revised lower its outlook to negative at the end of last week.

In the domestic docket, Turkey’s Consumer Confidence improved to 82.0 for the current month (from 79.4). Later in the week, the Manufacturing Confidence measure is due on Thursday along Capacity Utilization figures, all ahead of the CBRT interest rate decision.

Also noteworthy: USD/TRY rose more than 10% from August’s open near 6.96 to Tuesday’s new all-time highs just below 7.67.

USD/TRY key levels

At the moment the pair is gaining 0.33% at 7.6414 and faces the next hurdle at 7.6672 (all-time high Sep.22). On the downside, immediate support is located at 7.4490 (21-day SMA) seconded by 7.4124 (low Sep.10) and then 7.2961 (low Aug.28).

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