The Central Bank cut the policy rate by 1 percentage point to 12 percent.
After the decision, the dollar/TL saw the historical peak with 18.42 as the first reaction. The exchange rate then declined gradually and stabilized above 18.36.
Euro/TL is around 18.08.
THE DOLLAR INDEX IS AT THE TOP OF 20 YEARS
After the Fed’s decision to increase interest rates, the dollar also strengthened in international markets. While the dollar index rose to 111.72, the new high of 20 years, the rise has reached 2 percent since the beginning of the week and approximately 17 percent since the beginning of the year.
Euro/dollar is traded at 0.98 level.
ABOVE FED’S ESTIMATED PRICED LEVEL
While the Fed raised the policy rate by 75 basis points for the third time in a row, officials predicted that the policy rate would rise to the range of 4.25 to 4.50 percent by the end of the year.
The year-end level forecast of interest rates is based on the level priced before the meeting.
It was 100 basis points above Fed officials’ forecasts three months ago.
CURRENT DOLLAR – EURO PRICES