The Turkish lira fell against the US dollar today as complicated environment makes it hard for the central bank to support the currency.
On one hand, the falling currency and accelerating inflation prompt the Central Bank of Republic of Turkey to tighten its monetary policy. On the other hand, the central bank remains under pressure from the government to keep interest rates low to bolster economic growth. The bank resorted to raising various rates without touching its benchmark rate, but it looks like the current environment demands more decisive actions.
USD/TRY ticked up 0.04% to 3.7827 as of 18:51 GMT today.
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