Dollar/TL exchange rate is close to its peak – Sözcü
Dollar/TL is moving horizontally to its historical peaks, which it rose to last week due to global selling pressure. TL liquidity developments, weekly CBRT data and budget realizations will be followed in the markets today.
In the US, weekly unemployment claims, retail sales, industrial production and other Data agenda is intense.
Atlanta Fed President Raphael Bostic said he was “open” to cutting interest rates in September and that the central bank “does not have the luxury of being late” in easing monetary policy.
Traders are divided on whether the Fed will cut interest rates for the first time in four and a half years at its Sept. 18 meeting, but the cut will be a larger-than-expected 50 basis points. Indications that inflation will slow but remain persistent have led to pricing in a larger-than-expected rate cut falling from 50 percent to 37.5 percent.
Global markets, especially oil markets, are also monitoring the rising tension in the Middle East due to concerns that the war could spread and restrict global oil supply.
Palestinian President Mahmoud Abbas will speak at the Turkish Grand National Assembly General Assembly today during his visit to Türkiye, which began yesterday.
After rising to a new peak of 33.67 last week due to global selling pressure, the USD/TRY started the day around 33.60 this morning. After losing 1.1 percent against the USD last week, the TL has been more stable this week.
NEW STEP FROM TCMB
Bankers had been closely monitoring the CBRT's liquidity steps after TL overnight interest rates fell below the policy rate again at the beginning of this week.
The CBRT, which can withdraw unlimited liquidity from the lower band of the interest rate corridor in the overnight market, transferred these transactions to the Takasbank money market as of yesterday.
According to the information provided by the traders, the CBRT will be able to enter a purchase order to withdraw TL liquidity with the 47 percent quotation, which is the lower band of the overnight interest rate corridor in the Takasbank money market.
Data showed that excess liquidity had risen to approximately 175 billion TL as of yesterday. The overnight interest rate was 49.3 percent yesterday, below the policy rate since the beginning of the week.