USD/TRY climbs to fresh highs near 3.80

The Turkish Lira has resumed its downside vs. the greenback, lifting USD/TRY to fresh tops in the vicinity of 3.80.

USD/TRY rebounds from 3.72

After two consecutive pullbacks, the pair is regaining some ground lost backed by the renewed bid tone around the US dollar amidst a generalized pick up in the risk aversion.

TRY remains under pressure despite recent gains from last week’s all-time lows in the 3.95 neighbourhood, with geopolitical risks, a deteriorating political scenario in the country and heightened risks over the banking system poised to undermine any upside attempt.

In addition, the omnipresent conflict between the central bank (CBRT) and the government adds to the currency’s weakness, also capping potential gains. Looking ahead, the CBRT is expected to tighten its monetary policy at its meeting on January 24, in order to give some oxygen to the beleaguered currency.

USD/TRY key levels

At the moment the pair is up 2.09% at 3.8018 facing the next hurdle at 3.8285 (high Jan.13) ahead 3.9423 (all-time high Jan.11). On the other hand, the next support lines up at 3.7161 (low Jan.13) followed by 3.7058 (low Jan.10) followed by 3.6249 (20-day sma).