Dollar/TL Hits Record High

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Dollar/TL Hits Record High

As upward movement continues in the Dollar/TL exchange rate, the pair recorded a notable jump in the early hours of the morning. A similar momentum was also observed in the Euro/TL exchange rate.

The Dollar/TL had accelerated towards the 34.73 level on the last trading day of the previous week, before pulling back below the 34.5 level. Starting the new week with an upward trend, the Dollar currency tried to find footing above 34.50 in yesterday's transactions. Early today, an upward jump was seen, with the pair testing the record level of 34.71 once again. The Euro/TL rate, after reaching its peak in September, entered a downward trend but regained upward momentum this week. Following an almost 1% increase, the Euro began the new day positively, rising to as high as 36.81 in the morning hours before continuing around the 36.6 region.

Gold has gone up. Gram gold, parallel to the ounce gold, had entered a downward trend in November. However, with the resurgence of geopolitical tensions this week, it turned its direction back upward.

Beginning the week at the 2,830 TL region, gram gold gained over 2% in value. Starting the day with buying interest, gram gold is moving close to 2,920 TL in the morning hours.

Increase in geopolitical risk in global markets. Meanwhile, the increase in geopolitical risk in global markets has begun to come to the forefront again. The United States' statements regarding the possibility of allowing long-range Atacms missiles to be used in Russian territories with regards to Ukraine have heightened tensions. In light of this development, Kremlin Spokesman Dmitriy Peskov described the potential granting of permission by the U.S. to Ukraine to strike Russian territory with long-range weapons as "a new phase of tension."

Additionally, strong demand for the dollar has been observed in the general market. Although the DXY started the week with a partial decline from the level of 106.6, it continues to remain above the 106 level.

The domestic agenda focuses on the interest rate decision, which will be announced on Thursday by the Central Bank of the Republic of Turkey (TCMB). While the market does not expect a change in the interest rate, clues regarding the possibility of a rate cut in December will be sought in the decision text. In this context, the Monetary Policy Committee's views on inflation will be closely monitored. Despite the high-interest environment maintaining the Turkish lira's appeal, it has been observed that volatility in the currency continues to rise in case of increasing geopolitical risks.