USD/TRY stays close to highs above 3.5100

The Turkish Lira is losing ground vs. its American peer on Thursday, pushing USD/TRY to fresh daily highs above the 3.5100 handle.

USD/TRY up on CBRT, USD-buying

The pair picked up buying interest after the Turkish central bank (CBRT) left unchanged its monetary conditions at today’s meeting. In fact, the CBRT kept the O/N lending rate at 9.25%, the O/N borrowing rate at 7.25% and the One-week Repo rate at 8.00%.

In addition, the central bank kept the Late Liquidity Window borrowing rate at 0% and the lending rate at 12.25%.

In the meantime, TRY continues to give away part of recent gains after reaching YTD tops vs. the buck in the 3.4700 area seen on Wednesday. Adding to the pair’s corrective upside, the greenback keeps the bid tone intact after the Federal Reserve hiked rates by 25 bp on Wednesday.

USD/TRY key levels

At the moment the pair is up 0.86% at 3.5175 and a breakout of 3.5396 (20-day sma) would aim for 3.5587 (high Jun.7) and finally 3.5902 (55-day sma). On the other hand, the next support lines up at 3.4782 (200-day sma) followed by 3.4725 (2017 low Jun.14) and then 3.3370 (low Dec.8 2016).