The Turkish lira fell today, extending its decline for the seventh consecutive trading session, after Turkey’s central bank disappointed market participants by yesterday’s monetary policy statement.
The Central Bank of the Republic of Turkey left its interest rates unchanged at yesterday’s monetary policy meeting. The bank said in the statement:
The Committee has decided to maintain the tight monetary policy stance until inflation outlook displays a significant improvement.
Traders were disappointed that the central bank dropped mention that it is going to raise rates to support the currency. As a result, the lira slumped, reaching the lowest level since October 10 on the previous trading session.
USD/TRY rose from 5.9252 to 5.9417 as of 13:57 GMT today, though it has retreated from the daily high of 5.9710.
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