The Turkish lira crossed 7.38 against the US dollar for the first time ever, after data showed the country's industrial output rebounded 0.1% in June, missing market forecasts of a 1.1% growth, while the current account deficit came in larger than expected. Also, investors continued to worry about the state's capacity to support the currency after the central bank's gross foreign reserves slumped to a fresh 14-1/2-year low last week. Policymakers on Tuesday moved to reduce to zero liquidity limits offered to primary dealers as part of open market operations. The move was seen as the latest effort to squeeze credit via backdoor channels, as the central bank has been avoiding hiking interest rates amid a steep economic recession caused by the coronavirus pandemic. The lira lost almost 20% against the dollar so far this year.
Historically, the Turkish Lira reached an all time high of 7.83 in August of 2020. Turkish Lira - data, forecasts, historical chart - was last updated on August of 2020.
The Turkish Lira is expected to trade at 7.47 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 7.73 in 12 months time.