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Turkey, US Foreign Ministers Talk Over Phone; USD/TRY Extends Gains

TURKEY
  • Turkey’s new foreign minister, Hakan Fidan, and his US counterpart Antony Blinken discussed Sweden’s NATO membership, the sale of F-16s and the Ukraine grain deal in call, Turkey’s Foreign Ministry said in statement this morning. The pair agreed to speak again soon.
  • The lira has weakened further against the dollar for a 13th consecutive session, extending the losing streak to the worst since 1996. USD/TRY trades 0.5% higher Thursday following yesterday’s notable 7.5% rally - primarily driven by easing bank intervention in FX markets following the appointment of new Treasury and Finance Minister Mehmet Simsek and his more orthodox approach to markets.
  • President Erdogan will speak today in Ankara at 1200BST/1400 local time before chairing a National Security Council meeting at 1300BST/1500 local. Meanwhile, the central bank will publish weekly portfolio capital flows data at 1230BST/1430 local time.

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