USD/TRY unchanged above 3.78 post-CBRT

• CBRT left key rates unchanged at today’s meeting.
• TRY depreciates towards the 3.8000 area, 9-month lows.

The Turkish Lira remains on the defensive following the CBRT’s interest rate decision, with USD/TRY gravitating in session tops above 3.7800 the figure.

USD/TRY rally stays well and sound

The Turkish currency posted little-to-none reaction after the CBRT keeps the monetary status quo intact at today’s meeting, in line with initial expectations.

In fact, the CBRT left the Overnight Lending Rate at 9.25%, the Overnight Borrowing Rate at 7.25% and the One-Week repo rate at 8.0%. In addition, the central bank’s Late Liquidity Window lending rate stayed at 12.25%.

The CBRT noted the strong economic activity as of late, adding that the implementation of structural reforms could contribute further to the potential economic growth. The central bank also signaled the inflation stays in high levels.

In the meantime, the pair keeps the upside unabated, trading in multi-month tops and targeting the all-time highs above 3.9400 seen in early January.

USD/TRY key levels

At the moment the pair is up 0.32% at 3.7795 and a breakout of 3.8082 (high Oct.25) would aim for 3.9107 (high Jan.27) and finally 3.9423 (all-time high Jan.11). On the other hand, the next support lines up at 3.6946 (10-day sma) followed by 3.6519 (21-day sma) and then 3.6215 (low Oct.13).