USD/TRY drops to 28.5000 post-CBRT rate hike – Crypto News – Crypto News
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USD/TRY finally reaches 18.20 and beyond, new 2022 highs USD/TRY finally reaches 18.20 and beyond, new 2022 highs

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USD/TRY drops to 28.5000 post-CBRT rate hike – Crypto News

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  • USD/TRY retreats to the 28.5000 region on Thursday.
  • The CBRT hiked rates more than initially expected.
  • Further tightening still appears on the horizon.

The Turkish currency gathers renewed steam and drags USD/TRY to fresh weekly lows near the 28.5000 zone on Thursday.

USD/TRY retreats to multi-day lows on CBRT

USD/TRY reversed four consecutive daily advances and briefly revisited the 28.5000 region after the Turkish central bank (CBRT) caught market participants off guard by raising its One-Week Repo Rate by 500 bps to 40.00% at its event on Thursday.

The move by the CBRT came as a surprise after market consensus was expecting a 250 bps rate hike. According to the statement, the Committee has determined that the current monetary tightening level is close to the necessary level for disinflation, and the pace of tightening will slow down, completing the tightening cycle quickly while maintaining price stability.

So far this year, the Turkish lira has depreciated nearly 55% vs. the greenback, having advanced in only six months since January 2021.

USD/TRY significant levels

So far, USD/TRY is losing 0.16% to 28.7611 and faces the next support at 27.8265 (55-day SMA) seconded by 25.2143 (monthly low August 25) and finally 23.9286 (200-day SMA). On the flip side, immediate resistance comes at 28.8736 (2023 high November 23) followed by 29.0000 (round level) and 30.0000 (round level).

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