Turkish Lira Above 42.6

2025-12-11 11:24 By Joana Taborda 1 min. read

The Turkish lira continued to weaken, hitting fresh record lows above 42.6 per US dollar in December and extending its year-to-date decline to roughly 23%.

The currency’s gradual, managed depreciation, ongoing since July 2023, has persisted amid renewed concerns over the country’s political outlook, which continue to dampen investor sentiment.

Markets are also watching closely for the announcement of the 2026 minimum-wage increase later this month, as it could influence next year’s inflation dynamics.

Turkey’s inflation eased more than expected to 31.07% in November, the lowest level since November 2021.

The central bank expects inflation to end 2025 at around 31% and maintained its 2026 forecast at 16%.

In December 2025, the monetary authority delivered a fourth consecutive rate cut, reducing borrowing costs by 150 bps, larger than the 100 bps move anticipated by most investors.



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