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USD/TRY Grinds Higher Against the Grain On Persistent Inflation Risks

TURKEY
  • USD/TRY trades +0.16% higher this morning, bucking early selling pressure on the BBDXY following yesterday’s hot CPI print.
  • The rise was broad-based across the basket, but significantly higher in transport due to soaring energy prices.
  • Markets now expect CPI to remain sticky in the 60-70% range throughout 2022, compounding socio-economic and political risks on the ground with no sign of any policy reversals in the near-term.
  • Widening trade deficits also continue to bolster headwinds to TRY assets, with markets holding little faith in the FX-linked deposit scheme to offset the economic deterioration over the medium to longer-term.
  • USD/TRY continues to drift higher towards 15.00 in the interim. Intraday Sup1: 14.6865, Sup2: 14.6656, Res1: 14.7144, Res2: 14.74
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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