Dollar drops below TL 2.90

DAILY SABAH
ISTANBUL
Published 21.06.2016 00:27
Updated 21.06.2016 00:48

As markets started perceiving that Britain is more likely to remain in the EU as an outcome of the referendum this Thursday, the appetite for risk in world markets rose, leading dollar-Turkish lira parity to drop to TL 2.90 yesterday around noon.

The dollar-TL exchange rate last week on Friday was TL 2.92, and started yesterday morning at a level closer to TL 2.91. Furthermore, U.S. Federal Reserve (Fed) Board Chair Janet Yellen's speech today, which is expected to signal that the Fed will not act quickly in raising interest rates, will be determinant in the way the dollar moves against other currencies.

The Central Bank of the Republic of Turkey (CBRT) Monetary Policy Committee (MPC) decision regarding interest rates will be another driver in the way the exchange rate fluctuates. The CBRT is expected to lower the upper band of the interest rate corridor by 50 base points today.

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