Turkey’s lira traded around 8.6 against the US dollar in July, not far from an all-time low of 8.8 to the USD hit last month, amid broad dollar strength as well as worries about COVID-19 infections worldwide and inflationary pressure. The country's high inflation number for June eased concerns of a near-term cut to the policy rate, as investors have been expecting premature monetary policy easing in Q3-Q4 of 2021 due to President Recep Tayyip Erdogan's calls for lower interest rates to support the economy. Meanwhile, Central Bank Governor Sahap Kavcioglu said inflation could be higher than expected this month and next, but those moves would not affect the central bank's year-end forecast of 12.2%.
Historically, the Turkish Lira reached an all time high of 8.92 in June of 2021. Turkish Lira - data, forecasts, historical chart - was last updated on July of 2021.
The Turkish Lira is expected to trade at 8.67 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 9.07 in 12 months time.