Turkish Lira/dollar rate hits highest level since January

ANKARA - Anadolu Agency

The Turkish Lira/U.S. dollar rate rose to 2.292 on Oct. 1, its highest level since Jan. 27, just before the Turkish Central Bank intervened to stop a slide in value of the lira on Jan. 29.

The Central Bank had intervened in the markets and introduced sharp interest rate hikes to prevent a further slide in the value of the lira on Jan. 29.

The U.S. dollar buying rate rose to 2.295 lira at 11:05 am (09:05 GMT) on Oct. 1 and the selling rate was 2.289 lira.

The U.S. dollar on Sept. 30 was changing hands with the buying rate from 2.2780 lira and selling at 2.2786.

Turkey’s Central Bank on Sept. 26 announced that it would increase the daily foreign exchange auction amount on Sept. 29 to $40 million, from a minimum of $10 million.

“Due to heightened volatility observed in exchange rates, the daily foreign exchange selling auction amount will be increased,” the Bank said.

The Central Bank also left interest rates on hold in its latest monetary policy committee meeting amid anticipation of earlier-than-expected U.S. interest rate hikes and recent adverse economic figures in Turkey, maintaining its tight monetary policy in order to hold the value of the lira in check.