Turkish lira builds on momentum from central bank decision
USD/TRY is now lower by 3.2% on the day, with the lira gaining on the back of the CBRT's decision to push forward with a more focused and simplified rate framework ahead of its meeting next Thursday.
The fact that the central bank is acting independently is providing some relief for the lira but the real fear behind the recent drop remains intact, as Erdogan doesn't look like he's going away any time soon.
If he is to come out tops in the election, worries will start to emerge again considering he's an advocate against higher interest rates. While the central bank may have stemmed the bleeding for now, it certainly won't take much to reignite fears of another selloff in the near future.
------
