Sharp increase in USD/TL exchange rate

The upward momentum in USD/TL continues.

An increase exceeding 5 per cent was recorded in the exchange rate. After this increase, the new record in the exchange rate was 22.85. Dollar / TL started the day at 21.61. The 3-day increase in USD/TL exceeded 8 per cent. Since the beginning of the year, there has been an increase in the exchange rate exceeding 20 per cent.

A record was seen with 24.55 on the Euro / TL side.

Benchmark bond interest is at 15.28 per cent.

While there was an upward momentum in the USD/TL following the elections, foreign institutions also revised their USD/TL expectations.

While Commerzbank increased its year-end USD/TL forecast from 20 to 25, it announced its 2024 year-end expectation as 30.

Commerzbank Senior EM Economist Tatha Ghose wrote in his report dated 1 June that after President Recep Tayyip Erdoğan won the election, there is no longer any uncertainty about the direction of policies and therefore there is no reason for the FX market to 'continue to wait'.

Goldman Sachs, on the other hand, pronounced the 28 level.

In their reports dated 3 June, Goldman Sachs analysts revised their USD/TL forecasts for the three, six and twelve-month periods upwards, citing the pressures on the exchange rate.

Goldman Sachs analysts, including Kamakshya Trivedi and Danny Suwanapruti, increased their three-month USD/TL forecast from 19 to 23, six-month forecast from 21 to 25 and twelve-month forecast from 22 to 28. Analysts stated that international reserves are close to levels where serious lira weakness was previously seen and net reserves have moved into negative territory.