Fundamental analysis
15 May, 2019
Research Department
USD/TRY pushed higher as the dollar slightly grew and the Lira again lost value against a basket of other currencies. Turkey has raised a tax on some foreign exchange sales to 0.1% from zero, the country’s latest effort to discourage a months-long trend of Turks selling the beleaguered lira for more stable dollars and euros. The move comes after days of intervention by state banks, which have spent billions of dollars in foreign markets to support the lira. In a separate budget-boosting measure on Tuesday, Turkey raised taxes on lower-valued packages from abroad. Since last year’s currency crisis, when the lira lost as much as half its value against the dollar, a loss of confidence among local investors has pushed up foreign-currency deposits and funds including precious metals over the last six months. In the US, Retail Sales data for April will be released today at 13:30 GMT+1.
