Turkey: Turkish lira weakens in late August amid Syrian conflict
August 30, 2013
On 30 August, the Turkish lira (TRY) traded at 2.04 per USD, which was 6.1% weaker than the level recorded on the same day of the previous month. The figure contrasted a 0.3% appreciation recorded at the end of July. On an annual basis, the lira is 11.7% weaker than in the same month last year.
The Turkish lira weakened beyond the TRY 2.0 per USD mark on 27 August after the United States signaled possible military intervention in Syria. Following the sudden slide, Governor Erdem Basci noted that the Central Bank had ruled out the use of interest rates to defend the lira, but left open the possibility of using foreign-exchange reserves and other tools without mentioning when these measures will be announced.
More recently, on 6 September, the lira strengthened 1.4% to 2.07 per USD as investors speculated that the Central Bank would support the currency and the possibility of an imminent military strike on Syria eased.
FocusEconomics Consensus Forecast panellists expect the lira to trade at 1.88 per USD by the end of this year. For 2014, the panel projects the lira to trade at 1.90 per USD.