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Lira Rally Taking A Breather

TURKEY
  • Momentum behind the lira rally has subsided somewhat with TRY starting the week on a relatively soft note and USDTRY inching up to 6.9942 from a morning low of 6.9585.
  • Treasury and Finance Minister Lutfi Elvan has stated that it is unacceptable to turn Turkey's FX reserves into a political issue.
  • Goldman Sachs has revised its 2021 growth forecast for Turkey to 6% from 4%, while noting that higher policy rates and lira strength will dampen growth towards the end of the year.
  • The capacity utilisation rate for February edged down to 74.9% from 75.4%. Trade balance data for January will be released on Friday.

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