Dollar/TL is moving close to its historical peaks, having risen due to global selling pressure last week. TL liquidity developments, US inflation data and increasing geopolitical concerns are being followed in the markets.
Producer price data released yesterday in the US strengthened expectations that consumer price inflation, which will be monitored today, will also be moderate, thus increasing global risk appetite.
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.
The White House announced earlier this week that the United States is prepared for any significant attacks that could come from Iran or groups it supports, even this week.
US Ambassador to Ankara Jeff Flake said the US wants Turkey and other allies that have relations with Iran to persuade Iran to reduce tensions in the Middle East.
After rising to a new peak of 33.67 last week due to global selling pressure, the USD/TRY started the day around 33.55 this morning. After losing 1.1 percent against the USD last week, the TRY has remained flat this week.
OVERNIGHT INTEREST RATE DROP BELOW POLICY RATE
Bankers started to monitor the liquidity steps of the TCMB again after the overnight TL interest rates fell below the policy rate yesterday. The data showed that the excess liquidity increased to approximately 160 billion TL as of yesterday. The overnight interest rate fell below the policy rate again after a break of one or two days at 49.96 percent yesterday.
With the three borrowings made yesterday, the Treasury increased its total borrowing amount in August to approximately 130 billion TL.