USD/TRY focused on US elections, CBRT
USD/TRY resumes the upside following Tuesday’s small pullback despite hitting fresh all-time highs in levels just shy of the 8.55 yardstick.
In the meantime, the currency remains well under pressure on the back of rising inflation, the persistent drain of FX reserves and negative real interest rates. It is worth noting that Tuesday’s inflation figures saw the CPI rising nearly 12% on a year to October, well above the central bank’s 5% goal.
Back to the US elections, a Biden win could increase the likeliness of sanctions against Ankara following the purchase of the S-400 Russian defence system.
So far, the lira is the worst EM currency performer, shedding nearly 30% this year. The pair gained almost 10% since the CBRT disappointed market expectations at its late October meeting.
USD/TRY key levels


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