Dollar/TL and Euro/TL rates open stable in interbank markets; economic data releases to shape market sentiment.
The Turkish lira (TL) opened the week with minimal movement against major currencies in the interbank market. As of the first trading day, the Dollar/TL rate remained steady above 34, while the Euro/TL exchange rate hovered around 38.05.
Turkiye Exchange Rate Overview
- Dollar/TL: The dollar opened the week at over ₺34, maintaining a steady position after recent fluctuations.
- Euro/TL: The euro was traded at approximately ₺38.05, reflecting stable market conditions.
Key Economic Data
As the week progresses, several significant economic indicators are set to be released, which could influence market sentiment and exchange rates:
- Monday (10:00 AM): The Real Sector Confidence Index and Manufacturing Industry Capacity Utilization Rate for August will be announced.
- Tuesday: The August Sectoral Inflation Expectations Report, including consumer inflation expectations, will be published, along with the Central Bank of the Republic of Turkiye (CBRT) Monetary Policy Committee (PPK) meeting summaries.
- Wednesday: Final foreign trade data from the Ministry of Trade is expected.
- Thursday: The August Economic Confidence Index figures will be released.
Foreign Exchange Market Expectations
The focus for many market participants will be on the CBRT’s PPK meeting summaries, which may provide new insights into the central bank’s policy direction. During its last meeting, the CBRT highlighted a decline in domestic demand, which has reduced inflationary pressures. However, persistent inflation in services continues to pose a risk, and the bank has hinted that monetary tightening could be necessary if inflation risks remain elevated.
- Interest Rates: The possibility of further tightening by the CBRT is on the table if inflationary pressures do not ease.
- Inflation Watch: Analysts will be closely monitoring the alignment of inflation expectations with the CBRT’s forecasts.
Turkish Lira Performance
The Turkish lira has shown some volatility recently, ending last week with a 0.9% loss against the dollar. Since the beginning of August, the TL has depreciated by 2.5% against the U.S. dollar, reflecting ongoing economic challenges and global currency trends.
Looking Ahead
As the week unfolds, investors and analysts will keep a close watch on the upcoming economic data releases and the CBRT’s communication. The market’s response to these events will likely set the tone for the Turkish lira’s performance in the coming days.
In the meantime, the steady start to the week suggests a cautious optimism in the markets, with traders awaiting further cues from both domestic and global developments. The stability of the Dollar/TL and Euro/TL rates could provide a buffer against potential volatility, but market conditions remain fluid as economic data continues to influence the broader economic landscape.
Source: NTV / Prepared by Irem Yildiz