Turkish lira collapses further after CBRT rate hike
Turkish lira lost ground again and fell to new historical low against US dollar, falling around 9% in two days after CBRT’s action on Thursday was seen by markets as insufficient.
The latest lira’s sell-off was sparked by decision of Turkish central bank to raise interest rate from 8.5% to 15% vs widely expected stronger hike to 22%, which disappointed investors and sent lira into fresh steep fall to new record lows at 25.70 zone.
Although subsequent pullback pared some losses, lira’s sentiment remains very weak, with corrective action likely to offer better levels to re-sell Turkish currency for test of targets at 26.47 and 29.58 (Fibo projections) and psychological 30.00 level which came in focus.
Res: 25.7189; 26.4963; 29.5849; 30.0000
Sup: 24.7541; 24.1073; 23.8486; 23.6864