Currency news

How did the dollar / lira start the interest rate decision week? by Investing.com

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© Reuters.

Investing.com – Rate started the week at 18.28, when the US Central Bank (Fed) and the Central Bank of the Republic of Turkey (CBRT) announce their interest rate decisions.

It will be held on Wednesday of this week. And while markets expect a further 75 basis point rate hike in June and July this month, the probability of 100 basis point is. The idea that it will remain elevated for the rest of the year, which has not shown a significant decline in the US, is very strong and the Fed is expected to continue raising interest rates at this month’s meeting and the following day. two meetings.

rose above the 110 level again last week and today, while trading positively near this level, the dollar’s influence is evident in the currencies.

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On the TL side, this week’s CBRT meeting will be seen. The central bank, which made its first interest rate cut this year in August, is expected to be 13% this month. The real loss of the Turkish lira is 67% due to the interest rate rising above 80% and falling.

And the dollar price, which recorded the highest level after the historical record by testing it above 18.30 last week, is trading at 18.28 today. While the exchange rate volatility is expected to increase towards the Fed and Central Bank meetings, if 18.36 is exceeded, a new record high will be seen.

Author: Deniz Engin

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