USD/TRY slips to 2.9350 on CBRT decision

The Turkish Lira is reclaiming part of the ground lost vs. the dollar in early trade, with USD/TRY now dropping to the mid-2.9300s.

USD/TRY lower post-CBRT

Spot has gained downside traction after the Turkish central bank (CBRT) lowered its

O/N Marginal Funding Rate by 25 bp to 8.50%, matching initial estimates.

Furthermore, the CBRT left unchanged its O/N Borrowing Rate at 7.25% and the One-Week Repo Rate at 7.50%.

In the meantime the pair is now snapping a 3-session positive streak after bottoming out around last week’s lows in the 2.9115/10 band, helped at the same time by a softer tone surrounding the greenback.

USD/TRY key levels

At the moment the pair is retreating 0.22% at 2.9346 with the immediate support at 2.9270 (100-day sma) followed by 2.9118 (low Aug.18) and finally 2.8741 (low Jul.14). On the other hand, a break above 2.9501 (55-day sma) would expose 2.9689 (20-day sma) and then 3.0285 (high Aug4.).