The Turkish lira appreciated towards 7.8 to the US dollar, after the minutes of last week's monetary policy committee meeting showed that the country's economic activity posted a marked recovery in the third quarter, although it started to decelerate since mid-October due to partial restrictions introduced to curb the spread of the pandemic. Turkey's central bank hiked interest rates and pledged to keep the tightness of monetary policy until a permanent fall in inflation is achieved, after Erdogan announced a new economic recovery plan based on price stability. At the same time, investors across the globe welcomed signs of progress on few Covid-19 vaccines. The Turkish lira has been the worst performer in emerging markets this year, having touched a record low of 8.6 against the greenback two weeks ago, amid concerns over inflationary pressures, depleting foreign exchange reserves and geopolitical tensions.
Historically, the Turkish Lira reached an all time high of 8.58 in November of 2020. Turkish Lira - data, forecasts, historical chart - was last updated on November of 2020.
The Turkish Lira is expected to trade at 7.87 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 8.14 in 12 months time.