The Turkish lira declined against the dollar mostly because the Euro declined against the dollar, and partly because the Turkish unit declined against the euro. Using 1-minute interval data for the past 48 hours, the chart shows two distinct slopes for the TRY/EUR parity. Aggressive bond buyiing by Turkey’s central bank probably contributed to about a 2 lira decline in the exchange rate vs. the US dollar.
TRY decline driven by euro decline, central bank bond buying
Aggressive bond buying by Turkey’s central bank probably contributed to about a 2 lira decline in the exchange rate vs. the US dollar.
