The lira fell almost 8% against the dollar this Monday amid persistent investor concern about the monetary policy of the Turkey, after jumping more than 50% last week with billions of dollars in state interventions in the market.
The Turkish currency was also supported last week by a government measure to cover currency losses on certain deposits.
The lira weakened on Monday to 11.6 per dollar, reducing losses then to 11.35.
“The biggest resistance is at 11.45 and 12.0, with support levels at 10.57 and 10.25,” QNB Invest said in a daily bulletin.
Last week’s rally took the Turkish currency back to levels seen in mid-November.
Last Monday, it plummeted to a record low of 18.4 to the dollar after a month of losses due to fears over the inflation amidst a succession of interest cuts conceived by the president Tayyip Erdogan.
At the current level, the currency is still 35% weaker compared to the end of last year.
Erdogan last Monday unveiled a scheme under which the Treasury and central bank will reimburse losses on deposits converted to lira into a foreign currency account, triggering the biggest intraday rally for the Turkish currency.
Source From: Moneytimes
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