USD/TRY: Lira is the best performing EM currency of the week

The Turkish Lira is seeing good days after a long time. 

The battered currency is currently trading near 7.8199 per US dollar, representing a 7.5% decline on the week, having reached a life-time low of 8.5777 last week. 

At one point on Wednesday, the TRY was trading at 7.7628 per US dollar, the lowest since Oct. 6. 

The Lira is this week's best performing emerging market currency. The second-biggest gainer, the Colombian Peso, is up just 2.48%. 

According to Robin Brooks, Chief Economist at the Institute of International Finance (IIF), Lira's sharp recovery rally could be attributed to the new economic team and represents a positive and dramatic easing in financial conditions. "That will help protect Turkey's economy as a bad COVID-19 second wave rages in Europe," Brooks tweeted. 

Despite the latest bounce, TRY is still down 31% on a year-to-date basis.