USD/TRY challenges all-time highs near 8.80 post-CBRT
- USD/TRY leaps to the vicinity of 8.8000.
- The CBRT surprised everybody by cutting rates to 18%.
The Turkish lira depreciated to nearly all-time lows vs. the greenback and pushes USD/TRY to the 8.8000 zone on Thursday.
USD/TRY up on dovish CBRT
USD/TRY quickly climbed to new highs after the Turkish central bank (CBRT) increased the One-week Repo Rate by 100bps to 18% against (almost) all odds at Thursday’s meeting.
The decision by the CBRT caught markets off-guard despite the central bank announced in past weeks that it might start setting the policy rate based on the core inflation, which is lower than the headline reading.
USD/TRY key levels
So far, the pair is gaining 1.43% at 8.7680 and a drop below 8.6056 (weekly low Sep.21) would aim for 8.4920 (55-day SMA) and finally 8.2590 (monthly low Sep.6). On the other hand, the next up barrier lines up at 8.7965 (monthly high Sep.23) followed by 8.7974 (2021 high Jun.25).
