Attention foreign exchange investors… How much is Dollar and Euro worth? Foreign exchange prices on April 5, 2024 – Last Minute Economy News

Traders stated that in addition to local institutions that started selling dollars last week before the holiday, foreign investors and local individuals also started selling foreign currency this week, and they expressed the opinion that sales will continue for a while thanks to the attractiveness of TL resulting from high interest rates.

It is thought that with this increasing foreign exchange supply, the CBRT’s foreign exchange reserves, which have decreased due to foreign exchange sales since the end of December, will now begin to recover. According to bankers’ calculations based on frequent data, the CBRT’s daily foreign exchange purchase exceeded 1 billion dollars as of Tuesday.

Dollar TL completed the last trading day before the local elections at 32.39. The exchange rate, which has been decreasing slightly every day since the beginning of the week with fluctuating movements, started the day at 31.95. Euro TL is traded in the 34.65 band.

The increasing need for TL by locals before the Eid holiday and the fact that some of those who switched to foreign currency before the election turned to TL were among the reasons for the rare downward pressure on the dollar and TL. The return on TL deposits that comes with interest rate increases is another factor that reduces the interest in foreign currency.

TL LOSE 9 PERCENT OF VALUE AGAINST THE DOLLAR

Traders pointed out that the movement in the foreign exchange market started from the Grand Bazaar. Reports on Turkish markets published after the local elections mostly contain positive opinions about the upcoming period.

TL lost 3.5 percent of its value against the dollar in March and approximately 9 percent in the first quarter. TL gained 1.4 percent value in the first week of April.

Since September 2023, there has been a limited rise in dollar/TL every day, except for rare downward pressures.

Despite the recent sales, bankers’ general expectation is that the rise in dollar/TL will gradually continue towards the 40 level at the end of the year. This means that TL loses nominal value against the dollar. However, the depreciation of TL under inflation also indicates that there will be a real increase in value. CBRT, on the other hand, gives the message that it is satisfied with the real value gain in TL.

There is no macro data to monitor except the treasury cash balance data that will be published at 17.30 today.

Looking at global markets, Asian stock markets declined due to tightening statements from some US Federal Reserve (Fed) officials and increasing geopolitical tensions reducing risk appetite, while traders remained cautious before the employment data to be announced later.

While traders avoided taking positions ahead of the US non-farm employment data to be announced today at 1530 GMT, the benchmark Brent oil price held at $90, the highest level since October last year.