US-dollar hits record high in Turkey

Baku. 28 of October. REPORT.AZ/ US-dollar exchange rate in Turkey exceeded 3.12 TYL, thereby updated historical maximum. Report informs citing the Bloombergthis is due to expectations of an increase of discount rate in December by the Federal Reserve (Fed).

So, the probability of a rate hike in December, according to futures contracts is equal to 72.5%. Theother reasons are domestic politics and geopolitical processes.

Researcher of brokerage KapitalFX Enver Ercan believes that in the short term the dollar will exceed 3,10 TRY / USD, then depreciation or further growth are possible: "However, the preservation of the course at 3,03-3,05 TRY / USD range seems no longer realistic".

Analytical group of Report believes, in case of a sharp acceleration of the devaluation of the Turkish lira, this process will inevitably impact on the region. As a result, depreciation of manat is also possible, since Turkey is a major trade partner of Azerbaijan.

Notably, in recent days the devaluation of the yuan - Chinese currency has also accelerated, which is one of our main trade partners.