USD/TRY off lows on CBRT, near 2.95

The Turkish Lira is appreciating vs. its American peer on Thursday, taking USD/TRY to the vicinity of the 2.95 handle for the time being.

USD/TRY lower on US selling, CBRT decision

The pair’s downbeat momentum remains intact after yesterday’s statement from the FOMC and the subsequent press conference by Chair J.Yellen have intensified the selling interest around the greenback.

Furthermore, TRY has grabbed extra attention after the Turkish central bank (CBRT) lowered its O/N Marginal Funding Rate by 25 bp to 8.25% at today’s meeting, matching initial forecasts.

In addition, the central bank left unchanged its O/N Borrowing Rate at 7.25% and the One-Week Repo Rate at 7.50%.

USD/TRY key levels

At the moment the pair is retreating 0.22% at 2.9493 with the immediate support at 2.9331 (200-day sma) followed by 2.9118 (low Aug.18) and finally 2.8741 (low Jul.14). On the other hand, a break above 2.9599 (20-day sma) would expose 2.9689 (55-day sma) and then 3.0285 (high Aug.4).