Turkish lira rises to 3-month high against US dollar

ANKARA

After the European Central Bank took additional monetary measures, the Turkish lira today strengthened to a three-and-a-half-month high against the U.S. dollar.

Yesterday European Central Bank President Mario Draghi announced new monetary easing measures, which saw the monthly bond purchasing program raise to €80 billion per month from €60 billion, and considerable cuts in its interest rates.

Following the ECB’s decision, the lira strengthened to 2.8734 levels against the US dollar, the lowest level since December 3, in line with appreciation seen in almost all emerging market economies.

Markets expect the ECB’s decision to boost risk appetite in emerging economies, as cheap euros are likely to flow into markets such as Turkey where there is a high return potential for investments.