Turkey's lira hit a new all-time low of 13.9 against the USD, after ratings agency Fitch revised the country's outlook to negative over risks from monetary policy direction. The credit rating agency affirmed the debt grade to BB-, as the central bank's "premature" monetary policy deteriorated domestic confidence. The lira went into a free fall in November, losing some 46% of its value against the greenback so far this year, as President Tayyip Erdogan called again for low interest rates despite soaring inflation and as the dollar benefited from hawkish US Federal Reserve. On the economic data front, Turkey's consumer price inflation rate rose more than expected to 21.31% in November, well above the central bank's mid-point target of 5%, while producer prices rose the most in 19 years.
Historically, the Turkish Lira reached an all time high of 14.14 in November of 2021. Turkish Lira - data, forecasts, historical chart - was last updated on December of 2021.
The Turkish Lira is expected to trade at 13.90 by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 14.69 in 12 months time.