Turkish Lira Hits New Low

2026-10-22 11:31 By Joana Taborda 1 min. read

The Turkish lira approached 50 per US dollar in October 2026, hitting a fresh record low as authorities maintained a controlled pace of depreciation while intervening in foreign exchange markets to prevent a sharper decline.

The lira remains exposed to carry-trade positioning, with investors borrowing in lower-yielding currencies to invest in Turkish assets offering higher returns.

At its October meeting, the Central Bank of Turkey cut its benchmark interest rate by 100 basis points to 36%, as expected, marking its first rate cut since the war with Iran began.

The decision followed a further easing in inflation, which slowed to 29.73% in September, its lowest level in nearly five years..

The easing cycle is expected to continue into 2027, with the policy rate forecast to fall to 28% by year-end.

Meanwhile, the investment fund sector is facing a crisis after regulators ordered the liquidation of 131 funds.



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Turkish Lira traded above 50
The US Dollar exchange rate rose above 50 Turkish Lira in the foreign exchange interbank market.
2026-11-03
Turkish Lira Holds at Record Lows
The Turkish lira traded near 50 per US dollar in November 2026, hitting a fresh record low as authorities maintained a controlled pace of depreciation while intervening in foreign exchange markets to prevent a sharper decline. The currency remains vulnerable to carry-trade positioning, whereby investors borrow in lower-yielding currencies to invest in Turkish assets offering higher returns. At its October meeting, the Central Bank of the Republic of Türkiye cut its benchmark interest rate by 100 basis points to 36%, as expected, marking its first rate reduction since the war with Iran began. However, inflation unexpectedly edged up to 29.77% in October. Despite the slight acceleration in inflation, analysts believe the latest reading is unlikely to alter the central bank's monetary easing path. Many continue to expect another 100bps rate cut this year.
2026-11-03
Turkish Lira Hits New Low
The Turkish lira approached 50 per US dollar in October 2026, hitting a fresh record low as authorities maintained a controlled pace of depreciation while intervening in foreign exchange markets to prevent a sharper decline. The lira remains exposed to carry-trade positioning, with investors borrowing in lower-yielding currencies to invest in Turkish assets offering higher returns. At its October meeting, the Central Bank of Turkey cut its benchmark interest rate by 100 basis points to 36%, as expected, marking its first rate cut since the war with Iran began. The decision followed a further easing in inflation, which slowed to 29.73% in September, its lowest level in nearly five years.. The easing cycle is expected to continue into 2027, with the policy rate forecast to fall to 28% by year-end. Meanwhile, the investment fund sector is facing a crisis after regulators ordered the liquidation of 131 funds.
2026-10-22