The U.S. dollar exchange rate against Turkish lira, which started off at 3.60 Tuesday morning, hovered between 3.59 and 3.61, as it rose up to 3.6117 at 10:43 a.m. before dropping down to 3.60 again at the end of the day.
Meanwhile, Turkey's foreign trade deficit in January surged by almost 10.3 percent to reach $4.31 billion while exports and imports soared by 18.1 percent and 15.9 percent, respectively, as revealed by foreign trade data. Robert Steven Kaplan, president and CEO of the Federal Reserve Bank of Dallas, said yesterday that the Federal Reserve must be patient while hiking interest rates gradually. Meanwhile, the possibility of Federal Reserve's interest rate increase during the March meeting has risen to 50 percent.
Ata Yatırım Research Deputy General Manager Cemal Demirtaş evaluated the recent surge in the Turkish assets. Speaking to the TV station, Bloomberg HT, Demirtaş noted that Turkish assets appreciated over the recent days, along with the assets in the emerging markets.
Explaining the expectations regarding Turkish lira, Demirtaş said, "We have observed that the U.S. dollar/Turkish lira parity now stood at reasonable levels, after Turkish lira significantly tumbled in January. Therefore, although we foresee 3.81 for the U.S. dollar/Turkish lira parity, we calculate the parity to settle between 3.50-3.55, by the end of the first quarter.
Meanwhile, Rabobank's London-based Strategist Pyotr Matys drew attention to the 9 percent increase in Turkish lira price after the U.S. dollar/TL parity hiked and saw 3.94 in January. He said if the U.S. Federal Reserve (Fed) hikes interest rate only once in 2017, the Turkish lira may spike against the U.S. dollar by another 6 percent.