USD/TRY tumbles to 2-month lows near 3.5600 on CBRT

The Turkish Lira is quickly appreciating vs. the greenback today, dragging USD/TRY to fresh lows near the 3.5600 region.

USD/TRY weaker post-CBRT

TRY met a wave of buying pressure after the Turkish central bank (CBRT) left unchanged its key rates at today’s meeting.

In fact, the CBRT left intact the One-Week Repo Rate at 8.00%, the O/N Borrowing Rate at 7.25% and the O/N Lending Rate at 9.25%. The central bank, however, rose the Late Liquidity Window (between 4pm and 5pm) lending rate by 50 bp to 12.25% from 11.75%.

The CBRT noted that it remains ready to use all available instruments to pursue price stability, while it would maintain the current tightening bias until the inflation outlook improves.

USD/TRY key levels

At the moment the pair is losing 0.46% at 3.5634 and a breakdown of 3.5608 (low Apr.26) would open the door to 3.5552 (low Feb.23) and then 3.5243 (2017 low Jan.2). On the other hand, the next up barrier is located at 3.5990 (high Apr.26) seconded by 3.6047 (high Apr.25) and finally 3.6411 (high Apr.24).