Turkish Lira collapses to new record lows past 20.40 vs. the US Dollar


  • The Turkish Lira extended the selloff to the 20.40/45 band.
  • The Lira's exodus accelerated after Erdogan's win on Sunday.
  • Erdogan reaffirmed the continuation of a low-rate policy.

The Turkish Lira (TRY) magnifies its decline vs. the greenback and propels USD/TRY to a new record top north of 20.40 on turnaround Tuesday.

The Turkish Lira is poised for further weakness

The march north in USD/TRY remained unabated on Tuesday amidst the unabated sell-off in the Lira, which was particularly magnified after incumbent Recep Tayyip Erdogan secured his victory in the 2023 presidential election, extending his rule into a third decade in power.

The deep pullback in TRY comes pari passu with quite a pessimistic economic outlook for the country, which can even get worse after President Erdogan reaffirmed the continuation of the unorthodox (unreal? Non-sensical?) policy of tackling the elevated inflation with low interest rates.

Further concerns also emerge in a context where the country's FX reserves do everything but grow and the current account deficit flirts with its widest in series history.

It is worth noting that the pair has closed with gains in every single week since March 1.

Later on Tuesday, Trade Balance figures for the month of April will be the sole release in the domestic docket ahead of Q1 GDP results on Wednesday and the Manufacturing PMI on Thursday.

USD/TRY key levels

So far, the pair is gaining 1.37% at 20.3879 and faces the next hurdle at 20.4196 (all-time high May 30) followed by 21.00 (round level). On the downside, a break below 19.3967 (55-day SMA) would expose 19.1366 (100-day SMA) and finally 18.8192 (200-day SMA).

Share: Feed news

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

AUD/USD risks a deeper drop in the short term

AUD/USD risks a deeper drop in the short term

AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.

AUD/USD News

EUR/USD leaves the door open to a decline to 1.0600

EUR/USD leaves the door open to a decline to 1.0600

A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.

EUR/USD News

Gold is closely monitoring geopolitics

Gold is closely monitoring geopolitics

Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.

Gold News

Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving

Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving

Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.

Read more

Is the Biden administration trying to destroy the Dollar?

Is the Biden administration trying to destroy the Dollar?

Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.

Read more

Forex MAJORS

Cryptocurrencies

Signatures