Sunday, January 24We Break the News

Turkish Lira Strengthens Slightly on Upbeat Data

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The Turkish lira traded around 7.4 per US dollar, slightly stronger than Monday’s 7.5, after economic data showed the country’s industrial production continued to expand at a solid pace in November, easily beating market expectations. Retail trade numbers also pointed to a robust domestic demand, despite the imposition of tighter controls to contain the spread of the pandemic. On the monetary policy front, central bank officials said last month that policy will remain tight in 2021 to lower inflation in a lasting way and hit a target of 5% by 2023. The latest inflation report showed the country’s consumer prices rose 14.6% in December, the most since August 2019 and well above the central bank’s 3%-7% target. The lira was among the worst-performing EM currencies in 2020, having touched a record low of 8.6 against the greenback last month due to concerns over inflationary pressures, depleting foreign exchange reserves and geopolitical tensions.

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