USD/TRY climbs to record highs beyond 3.35

Another day, another drop of the Turkish Lira, now sending USD/TRY to post fresh all-time tops in the 3.3500 neighbourhood.

USD/TRY stronger on USD buying

The pair keeps its march north unabated today, advancing for four consecutive weeks including today’s historical peak just above the 3.3500 handle.

The upside momentum in the greenback and its impact on the Emerging Markets space remains the almost exclusive catalyst behind the recent sharp upside, always supported by increasing bets on further tightening by the Federal Reserve by year-end.

In addition, TRY remains noticeably weak especially following the failed coup attempt in mid-July, regaining some ground towards the 2.9000 key support in mid-August, but since then it was a one-way road for the Lira.

The political scenario in Turkey should continue to be a source of selling pressure for TRY, while there are still no signs from the Turkish central bank on whether it will act (or not) in order to stop the currency from depreciating further.

USD/TRY key levels

At the moment the pair is up 0.76% at 3.3481 facing the next resistance at 3.3530 (all time high Nov.17). On the flip side, a breach of 3.3093 (low Nov.17) would expose 3.2330 (low Nov.11) and finally 3.1703 (20-day sma).