Closing the day at 3.62 on Tuesday, the U.S. dollar was quoted at 3.65 Turkish lira earlier yesterday, after U.S. President Donald Trump's speech at the U.S. Congress.
The global upward trend in the greenback, which started with a decreasing risk appetite for emerging markets at the end of last week, continued after President Trump's speech, in which he gave details concerning the budget. Due to the global appreciation of the U.S. dollar, the currency was traded at 3.65 earlier yesterday morning. The Turkish lira in the currency basket was quoted at 3.74 on Tuesday evening while euro-lira exchange rate hit 3.84.
Following the statements by U.S. Federal Reserve (Fed) officials implying that the Fed might go for an interest rate hike in March, the dollar continued to spike, particularly against emerging market currencies.
Wiliam Dudley, a senior official at the Fed in New York, said the conditions that require a tight monetary policy have become very convincing.
Concerning an interest rate hike supported by full employment, high inflation and possible tax reductions that the U.S. administration may put into force, San Francisco Fed chair John Williams said that he did not see any need for further delay to hike up the interest rate. The matter will be seriously discussed at the Fed's meeting in March. According to analysts, the statements from Fed officials have played a more major role in the greenback hike than Trump's speech about first year fiscal policies.
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