Turkish Lira loses value after Fed meeting

ISTANBUL

REUTERS photo

The Turkish Lira has lost value after the U.S. Federal Reserve hinted at a possible December interest rate hike and rallied against most emerging currencies. 

The lira’s value declined to around 2.93 from 2.89 against the dollar after the Fed decision on Oct. 28. The Turkish currency then rebounded to 2.916 early Oct. 29. 

The Fed left rates unchanged, as expected, and, in a direct reference to its next meeting, put a December rate hike firmly in play. It also downplayed global economic headwinds in its statement.

However, it added that it was still monitoring economic and financial developments abroad, as reported by Reuters. 

The Fed hasn’t hiked rates in about a decade.

The dollar index, which tracks the U.S. unit against a basket of six of its major peers, was down about 0.2 percent at 97.594 early Oct. 29, but still not far from a 2.5-month peak of 97.818 scaled after the Fed’s message.