Turkish Lira Hits Record Low as Markets Anticipate Fed Hike

The Turkish lira fell today, hitting a record low, as the hawkish outlook for Federal Reserve’s monetary policy and the resulting strength of the US dollar led to weakness of emerging markets’ assets.

Fed Chairwoman Janet Yellen testified yesterday, and markets considered her comments as a signal that an interest rate hike is coming. CME FedWatch page shows 90% probability of a hike in December. Moreover, there is a 50% change of another hike in June 2018.

USD/TRY was up 0.18% to 3.3766 as of 11:26 GMT today, rising almost 1% earlier during the trading session.

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