Turkish Lira Slides To 8-day Low Against U.S. Dollar After Turkey Rate Cut
The Turkish Lira lost ground against the U.S. dollar in European deals on Thursday, as Turkey central bank lowered its key lending rate in a surprise move, citing an easing in global volatility and the reduced need for a wide interest rate corridor due to the efficient use of policy instruments.
The Monetary Policy Committee of the Turkish central bank, led by Governor Erdem Basci, decided to lower the marginal funding rate to 10.5 percent from 10.75 percent.
The overnight borrowing rate was left unchanged at 7.25 percent and the one-week repo rate at 7.50 percent.
Economists had expected the bank to leave all three of its main interest rates unchanged for a thirteenth straight month.
The Turkish Lira declined to an 8-day low of 2.8907 against the greenback from yesterday's closing value of 2.8743. The Turkish currency may find support around the 3.00 zone.
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