Turkish lira gains value after Fed minutes released

DAILY SABAH
ISTANBUL
Published 19.11.2015 22:14

After the U.S. Federal Reserve (Fed) released the minutes of a committee meeting on Wednesday, the dollar/Turkish lira exchange rate dropped below 2.85 yesterday.

The minutes revealed that many committee members believe the conditions for the increase in interest rates will occur as of the next meeting according to the outlook on the economy, labor market and inflation and therefore, the increase should take place at the next meeting.

The dollar/TL exchange rate, which was around 2.87-2.85 on Wednesday, dropped to 2.84 yesterday, the lowest in the last two weeks. However, euro/dollar parity continued to increase from 1.06 to 1.07, while the euro/TL rate dropped to 3.044 and is now around 3.047.

Analysts said that the minutes were an important twist before the Fed meeting on Dec. 15-16 and the exchange rates will be dependent on the data. Further, the non-farm payrolls data that will be revealed before the December meeting is also crucial and analysts said that there is still the possibility of not increasing the interest rates, as the minutes revealed that the interest rate increase will depend on this data.

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