Exchange rates started the new week with a decrease. After the Central Bank (CBRT) kept the interest rates fixed and the MPC text, which did not include any interest rate cut message for the upcoming period, the dollar/TL continued its limited decline, while it saw below 8.5 in the first part of the day.
After the dollar/TL inflation approached the policy rate and Erdogan's repeated call for low interest rates, it rose from 8.3 to 8.68, and then started to decline to 8.5 after the MPC decision.
Investors were watching whether the CBRT would give a discount message with text changes for the next month or months, if not this month, after President Tayyip Erdoğan's statement that interest rates would decrease in the coming period. However, despite this call, the CBRT did not give a discount message on the MPC last week.
With the support of the decline in the Dollar Index, after testing below 8.50 last week, it ended the week just above 8.51.
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