The US Dollar is trading against the Turkish Lira at a rate of 7.81 this morning, down -0.62%. The open rate sat at 7.86, the same as the pair’s previous close. USD/TRY will have a daily range between 7.80 and 7.91 and a 52-week range between 5.73 and 8.57.
At the beginning of November USD/TRY passed the 8.50 support level, the highest rate that traders have seen in five years but over the past month, the currencies have fallen below the 8.00 level and continued to show a subtle decline moving into December.
“Higher oil prices, weak manufacturing data, and ongoing diplomatic disputes with the EU are all weighing on sentiment” FXStreet reported. The EU and Turkey have been failing to come up with a solution to their problems regarding an EU military mission that involves German forces boarding and searching a Turkish cargo ship that is suspected to take illegal weapons into Libya.
This may seem like an unnecessary rivalry but this squabble emphasizes the strained relationship the EU has with Turkey as the EU consumes 50% of Turkish exports.
As USD/TRY moves above the 7.90 support level, it looks like the pair have been given the chance to move back towards the all-time highs that were reached in November. This will be dependent on Turkish President Erdogan and his recent changes regarding the country’s economic and monetary policies. TRY bulls will be standing by hoping the pair will be able to recover in the coming weeks.
By Surina Nath