USD/TRY advances to fresh record high around 23.6500.
Türkiye Unemployment Rate edged a tad higher in April.
Markets’ focus remains on the domestic economic scenario.
USD/TRY climbs to new all-time peak around the 23.6500 region at the beginning of the week.
USD/TRY: Next on the upside comes 24.00
USD/TRY adds to Friday’s advance and surpassed the 23.50 region with marked conviction to print a new record high on Monday.
The intense sell-off in the lira remains so far unabated amidst rising scepticism among investors at home and abroad regarding the potential next steps on monetary policy by the newly appointed economic team.
It is worth recalling that President R. T. Erdogan named M. Simsek as Treasury and Finance Minister, while former First Republic Bank Hafize Gaye Erkan will be at the helm of the Turkish central bank (CBRT). This move by Erdogan is expected to show a more market-friendly approach to the country’s economic front and may (a big "may") open the door to a more orthodox view of domestic monetary policy.
It remains to be seen, however, whether Erkan can impose her monetary will under Erdogan's leadership. The first round of this match is expected on June 22, when the CBRT will hold its monetary policy meeting amidst a pretty divided consensus between small rate hikes and a "shock and owe" strategy of a large rate raise.
So far, the Turkish currency has already depreciated nearly 28% since the start of the new year, while the drop has reached around 185% since the Turkish central bank (CBRT) embarked on its easing cycle in August 2021.
Also in the centre of the debate later this week appears to be a meeting between finmin M. Simsek and top bank executives.
On the domestic docket, the Unemployment Rate in Türkiye rose slightly to 10.2% in April and the Current Account deficit widened to $5.40B in the same month
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