Turkish Lira Continues to Weaken as Dollar Hits a New Record High at 34 TL, Euro Climbs to 37.83 TL
Dollar Hits Record ₺34 as Turkish Lira Weakens
The Turkish lira continues its downward trend, with the dollar reaching an unprecedented ₺34 on August 23, 2024. This marks a significant milestone in the ongoing depreciation of the lira, with the euro also climbing to ₺37.83. Investors are closely watching the currency markets as they anticipate potential moves by the U.S. Federal Reserve that could further influence exchange rates.
Current Exchange Rates:
As of 11:22 AM, the exchange rates in the interbank market are as follows:
- Dollar/TL: ₺33.9950
- Euro/TL: ₺37.5301
These figures reflect a substantial loss in value for the lira, which has seen a 0.8% decline against the dollar since the beginning of the week and a 2.4% drop since the start of the month.
Factors Driving the Lira’s Depreciation:
Several factors are contributing to the lira’s ongoing depreciation:
- Domestic Economic Challenges:
Domestic data, including the number of foreign visitors in July, is being closely monitored. However, economic indicators continue to paint a bleak picture for the lira. - Global Market Sentiment:
On the global stage, all eyes are on Federal Reserve Chair Jerome Powell, who is expected to provide key insights into future U.S. monetary policy. Investors are particularly keen on whether the Fed will implement a rate cut in September, following hints from several Fed officials that a slow and systematic approach may be taken.
Fed’s Impact on the Dollar:
The Federal Reserve’s policy decisions are crucial to the direction of the dollar, and by extension, its exchange rate with the lira. Recent data suggests the U.S. economy is still growing at a healthy pace, prompting some investors to lower their expectations for a significant rate cut in September. The probability of a 50 basis point cut has decreased from 30% to 24%.
Investor Outlook:
Moving forward, the key focus for investors will be:
- Fed’s September Meeting:
The potential for a rate cut remains on the table, but the exact timing and scale are uncertain. - Turkish Economic Data:
Domestic economic indicators will continue to influence the lira’s performance, especially as the country grapples with inflation and other macroeconomic challenges.
The exchange rate movements underscore the volatility in the Turkish lira, which is being affected by both domestic economic pressures and global monetary policy shifts. As the dollar and euro continue to climb, market participants will be watching for any signs of stabilization or further depreciation in the lira.
Source: NTV / Prepared by Irem Yildiz