The decline in the dollar could not save TL either

The dollar, which lost value on a global scale, continued to break new records against TL. Colombian and Argentinian pesos shared the same fate with the TL this week.

Dollar While it loses value against almost all currencies, it continues to gain value against TL. Dollar prices in the country rose to 28.7699 TL in the shallow market yesterday, thus breaking their historical record. The dollar, which moved at peak levels in the interbank market, completed the day yesterday at 28.7030 TL. Euro While testing 31.2531 TL, it completed the day at 31.2120 TL. USAWhile the cooling inflation in Turkey accelerated the decline in the dollar, the dollar index (DXY) fell to 103 with a decrease of 1.6 percent in the last 5 days.

ONE OF THE THREE COINS

DollarWhile TL has been losing value rapidly in the last 5 days, it has been able to continue its rise only against the Colombian Peso, Argentine Peso and Turkish Lira among the currencies of 23 developing countries. Economist Mahfi Eğilmez stated that as the US inflation weakened, the expectation that the US Federal Reserve (Fed) would pause interest rate hikes reduced the US bond interest rates, which in turn reduced the demand for the dollar. In an analysis he wrote on his website, Economist Mahfi Eğilmez stated that “the dollar/TL relationship works in the opposite direction”. attributed to non-economic reasons.

Mahfi Eğilmez

POLITICAL INTERVENTIONS

Eğilmez said, “The market, which entered an optimistic atmosphere with the rationalization policy initiated by the new economic management together with the Central Bank, started to reverse again due to mistakes in the social and political fields. The most important reason for this turn is the debates created on the Constitutional Court and the political interventions that occur in every field of law enforcement. In fact, there has been nothing else that increases risk in recent days. “While external forces work in our favor, internal forces work against us,” he said.

The best performance is in the Chilean Peso

While the dollar fell rapidly in the 5 days between November 13 and November 17, the Chilean Peso showed the best performance against the dollar among developing country currencies with a 4.55 percent gain in value. In these 5 days, the Polish Zloty gained 2.77 percent, the Thai Baht 2.60 percent, the Russian Ruble 2.21 percent, and the Mexican Peso 2.19 percent. The 5-day appreciation of the South Korean Won was 2.19 percent, the Czech Koruna was 2.06 percent, and the South African Rand was 1.83 percent. On the other hand, the 5-day loss of the Colombian Peso was 1.99, the Argentine Peso was 1.13 percent, and the Turkish Lira was 0.33 percent.