The Turkish Lira gave up its early gains against the U.S. dollar in European deals on Tuesday, after the Turkey central bank kept interest rates unchanged for the eleventh straight month, amid expectations that policy will be tightened in the near term in the backdrop of high inflation.
The Monetary Policy Committee of the Turkish central bank, led by Governor Erdem Basci, decided to keep the one-week repo rate at 7.5 percent. The overnight lending rate was left unchanged at 10.75 percent and the borrowing rate at 7.25 percent. The decision was in line with economists’ expectations.
The Lira retreated to 3.0393 against the greenback, off its prior 4-day high of 3.0197. The next possible support for the Lira is seen around the 3.06 zone.
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