Economy Minister Nihat Zeybekci said the dollar/TL exchange rate has been fluctuating above its natural rate by about 10 percent. The dollar-lira parity balanced at less than 2.90 yesterday, because of the impact of rising risk appetite in global markets.
Speaking to Reuters, Zeybekci described the loss of value for the lira, above the basket of currencies that constitute the dollar index, as a bubble. He added, "There are bubbles at the moment, even if they are slightly lower than 10 percent." Although the World Bank downwardly revised its global growth expectations yesterday, oil prices are continuing to rise after U.S. oil stocks fell below expectations, leading to an increase in risk appetite in global markets.
Brent crude oil has risen to $51.54 per barrel, the highest level in nearly eight months, and China's import data is above expectations, while the dollar index dropped to the lowest level in the past month. Due to the impact of rising risk appetite in global markets, dollar-lira parity fell to 2.8918 on Tuesday, the lowest level since May 4. After falling to 2.8950 today, dollar-lira parity balanced under 2.90 at 9:55 a.m. Euro-lira parity currently hovers around 3.2950. Analysts say that if the dollar-lira exchange rate drops below 2.89, optimism about the lira will increase. They note that the parity might push 2.87 and 2.85, and the 2.9159 level has become a resistance level.