Turkey's lira crossed 7.97 per USD for the first time ever, after the country's central bank left interest rates unchanged during its latest policy meeting, defying market expectations of a 175 bps hike; and set the margin between the CBRT Late Liquidity Window lending rate and overnight lending rate as 300 bps. The lira has lost more than 30% since the start of the year, amid geopolitical concerns, depleting foreign exchange reserves, inflationary pressures and a sizable current account deficit. Investors fear that the Azerbaijan-Armenia conflict over the disputed mountain territory called Nagorno-Karabakh could drag Turkey into another regional conflict, while Greece issued a new demand for EU sanctions on Ankara after Turkey said that its ship would carry out a seismic survey in the eastern Mediterranean.
Historically, the Turkish Lira reached an all time high of 7.98 in October of 2020. Turkish Lira - data, forecasts, historical chart - was last updated on October of 2020.
The Turkish Lira is expected to trade at 8.04 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 8.32 in 12 months time.