Lira further recovers amid signals of ease in trade tensions

ISTANBUL

The Turkish Lira has tested below 5.5 against the greenback amid signs of an ease in trade war concerns.

The dollar/lira parity regressed 5.48 early on Nov. 2 for the first time since early August. The lira has thus further recovered some of its 40 percent loss since a tension with the United States erupted over the arrest of pastor Andrew Brunson, who was released on Oct. 12. The currency saw 7.24, its historic low against the dollar, in the peak of the tension in mid-August.

The lira stands at 6.2620 against the euro. It saw 8.13 against the European currency in mid-August.

U.S. President Donald Trump wants to reach an agreement with Chinese President Xi Jinping at the Group of 20 nations summit in Argentina later this month, Bloomberg reported on Nov. 2, citing four people familiar with the matter. This has led to a significant relief to emerging currencies.

In the domestic market, eyes will be on the Turkish inflation data which will be released on Oct. 5. Analysts are also following news about whether Turkey will secure any waiver from the U.S. over its energy imports from Iran.