The Turkish lira /US dollar exchange rate has receded to its lowest level since October 4 as declining oil prices see a positive development in Turkey's struggle over the current account deficit.
The rate, which began the day of trading at 2.2313, had fallen to 2.2197 by midday on Tuesday, the lowest level seen since October 4.Arda Cosar, Research analysist at ALB securities, said that falling oil prices and expectation of the lower inflation rate and anticipated decline in current account deficit in Turkey are the main reasons that Turkish lira gained value against six major world currencies.
Cosar expects Turkish lira's value to increase more if the inflation and the current account deficits in the country decrease further.He said that The Turkish lira /US dollar (USDTRY) exchange rate of 2.2160 and 2.2050 will be a strong resistance point.
However, Cosar stressed that, if the prices rise, 2.2310 and 2.2370 will be other key supports for Turkish lira/dollar value.Meanwhile, Brent crude oil price reached $76.74 per barrel on November 14, down from $116 in June of this year.
The Central Bank of Turkey expects inflation rate in the country to decrease in the last months of 2014 thanks to the implementation of a tight monetary policy at the beginning of this year.