Turkish Lira Rallies After Central Bank Hikes Policy Rate

The Turkish lira gained today after the nation’s central bank increase some of its interest rates and talked about possibility of more hikes in the future.
The Central Bank of the Republic of Turkey announced today that it boosted its one week repo auction rate from 17.5% to 24%. While the decision was not unexpected, the scope of the increase was larger than even most optimistic forecasts. Moreover, the central bank stated that “if needed, further monetary tightening will be delivered.”
USD/TRY dropped from 6.3442 to 6.1962 as of 12:23 GMT today. EUR/TRY fell from 7.3738 to 7.2128 after rising to the daily high of 7.6221 earlier.

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