USD/TRY drops to 28.5000 post-CBRT rate hike
|- USD/TRY retreats to the 28.5000 region on Thursday.
- The CBRT hiked rates more than initially expected.
- Further tightening still appears on the horizon.
The Turkish currency gathers renewed steam and drags USD/TRY to fresh weekly lows near the 28.5000 zone on Thursday.
USD/TRY retreats to multi-day lows on CBRT
USD/TRY reversed four consecutive daily advances and briefly revisited the 28.5000 region after the Turkish central bank (CBRT) caught market participants off guard by raising its One-Week Repo Rate by 500 bps to 40.00% at its event on Thursday.
The move by the CBRT came as a surprise after market consensus was expecting a 250 bps rate hike. According to the statement, the Committee has determined that the current monetary tightening level is close to the necessary level for disinflation, and the pace of tightening will slow down, completing the tightening cycle quickly while maintaining price stability.
So far this year, the Turkish lira has depreciated nearly 55% vs. the greenback, having advanced in only six months since January 2021.
USD/TRY significant levels
So far, USD/TRY is losing 0.16% to 28.7611 and faces the next support at 27.8265 (55-day SMA) seconded by 25.2143 (monthly low August 25) and finally 23.9286 (200-day SMA). On the flip side, immediate resistance comes at 28.8736 (2023 high November 23) followed by 29.0000 (round level) and 30.0000 (round level).
(This story was corrected on November 23 at 12:09 GMT to say that the pair was USD/TRY instead of USD/JPY)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.