USD/TRY sits at weekly highs above 13.60 ahead of CBRT's inflation report

Heading into the quarterly inflation report due to be published by the Turkish central bank (CBRT) this Thursday at 1100 GMT, USD/TRY is extending the previous advance.

At the time of writing, the pair is posting small gains, sitting at the highest levels in a week above 13.60.

The unabated strength in the US dollar is mainly behind USD/TRY’s renewed upside, as bulls continue to cheer the hawkish Fed rhetoric. Fed Chair Jerome Powell hinted at faster rate hikes and balance-sheet reduction this year.

Meanwhile, Turkish central bank Governor Şahap Kavcıoğlu said on Thursday that the forex-protected lira deposit levels are around expected levels.

Additional quotes

“Will see an acceleration in these accounts.”

“Turks need to support de-dollarisation.”

Governor Kavcioglu’s remarks during Thursday’s press conference keep the lira under pressure.

All eyes now remain on Turkey’s first quarterly inflation report, with the country’s consumer inflation at over 36% in December, the highest rate during President Tayyip Erdogan’s 19-year rule.