Turkish lira accelerates fall after President Erdogan confirmed his commitment to further lowering of interest rates

USDTRY rose further on Monday, hitting new all-time high above 17.50, with fresh lira’s weakness being sparked by comments of Turkish President Erdogan over the weekend, as his boosted his unorthodox interest rate policy by referring to Islamic usury doctrine, in which high interest is avoided.
The lira extends its steep fall into the fourth consecutive month, slashed by Erdogan’s push for a 500 basis points cut of interest rates since September, being down nearly 30% only in three weeks of December, with no significant impact from the central bank’s $6 billion interventions this month.
The pair continues to run deeply into the uncharted territory, eyeing Fibonacci expansion targets at 18.3730 (FE 338.2%) and 19.1699 (FE 361.8%) with psychological 20 level coming in focus and expected not to provide strong headwinds since the 10 level was quickly taken out and the overall negative sentiment is unlikely to improve.

Res: 17.6000; 18.0000; 18.3730; 19.1699
Sup: 17.0664; 16.5545; 16.0000; 15.6050