USD/TRY at historical tops near 3.73, Lira tumbles

The Turkish Lira is once again losing considerable ground vs. the greenback, taking USD/TRY to fresh all-time high near 3.74, albeit receding some pips afterwards.

USD/TRY stronger on geopolitical concerns, USD strength

TRY continues to depreciate during the first weeks of the new year, intensifying the bearish note that prevailed throughout 2016.

Geopolitical concerns including the fragile situation with Russia and Syria plus the almost omnipresent threat of terrorist attacks has added to the recent warning by ratings agency Moody’s, citing security risks could weigh further on the economy and impact on the banking system.

Adding to TRY selling, Deputy PM N.Canikli said earlier today that the recent plunge of the currency is a result of increasing pressures around the central bank to increase interest rates.

In the data space, Industrial Production in Turkey has expanded at an annualized 2.7% in November. In the US the Fed’s Labor Market Conditions Index dropped to -0.3 from 2.1 (revised from 1.5).

USD/TRY key levels

At the moment the pair is up 2.37% at 3.7302 facing the next hurdle at today’s fresh all-time high at 3.7388. On the other hand, the next support lines up at 3.6371 (low Jan.9) followed by 3.5895 (low Jan.6) and then 3.5547 (20-day sma).