US Dollar vs Turkish Lira Price Chart
The US Dollar vs Turkish Lira Live Price & Charts at CAPEX.com features an interactive chart for the price of the US Dollar vs Turkish Lira as well as USDTRY trading conditions. US Dollar vs Turkish Lira Live Price & Charts can be displayed using a candlestick or linear chart. You can also look at numerous timeframes from 5 minutes to 1 week to analyze the US Dollar vs Turkish Lira price today.
Why Use US Dollar vs Turkish Lira Price & Charts?
Dollar vs Turkish Lira Live Price & Charts can be useful in several ways. For those looking to actively speculate on the price of USDTRY, rather than invest for the long-term, price charts are an absolute necessity. Short-term traders or investors may examine Dollar vs Turkish Lira prices on shorter timeframes, looking for areas of support to buy at and areas of resistance to sell at. Short-term traders or investors may also use charts to try to identify trends in the Dollar vs Turkish Lira rate to try to take advantage of them.
Long-term investors can also make effective use of Dollar vs Turkish Lira prices and charts. A long-term USDTRY investor may not be interested in a 10-minute or hourly timeframe, but in longer timeframes such as daily, weekly, monthly, or yearly charts. Like the short-term trader, long-term USDTRY investors may use charts to try to identify trends in the price of the US Dollar vs Turkish Lira, or they may try to spot potential areas of price support to buy at.
What moves US Dollar vs Turkish Lira price?
Many factors affect the market supply and demand for USDTRY price. The key factors are interest rates.
The Turkish lira lost over 50% of its value between September and mid-December 2021 when President Recep Tayyip Erdoğan ordered the Turkish central bank to start reducing interest rates. The country plunged into a currency crisis after the president insisted on four interest rate cuts over the four months despite surging inflation.
According to the latest data from the Turkish central bank, inflation in Turkey rose to 61.14% in March 2022 compared to the same period last year.
Turkey’s policy interest rate is 14% as of the end of 2021. This is much higher than the US, EU, and Japan interest rates.
President Erdoğan has been known to reject the established economic view that lifting interest rates helps to tackle inflation. He favors cutting interest rates, a measure that central banks usually apply when inflation is exceptionally low to prompt spending and borrowing.
Monday 20 December 2021 saw the lira hit a record low after President Erdoğan said in a televised speech that he will continue cutting interest rates, justifying his actions by using Islam’s teaching on usury. The speech follows a 100-basis point (BP) interest rate cut by the central bank of Turkey, taking the real rate in Turkey (which first deducts inflation) to -6%, the lowest in the world. However, the central bank had, at the time, promised to not cut rates further. This is a promise which may be reversed if President Erdoğan’s speech is to be taken at face value.
Interestingly, the moves to cut interest rates come at a time when central banks across the globe are looking to raise interest rates to curb surging inflation.
How high can the US Dollar to Turkish Lira prices go?
After surging to record highs in 2021 before registering a historic fall, could the US Dollar versus the Turkish Lira see continued volatility in 2022? Here we look at analysts’ USD/TRY predictions.
Prior to President Erdoğan’s announcement analysts at ING Bank were bullish on the USD/TRY. They predict the USD/TRY rate would continue to appreciate in the coming year owing to the shift in the stance of the Turkish central bank, saying: “Unless we see a tighter stance to anchor expectations and foster price stability, the current policy setting is negative for the lira.”
Skandinaviska Enskilda Banken expects the Turkish lira to continue weakening against the US dollar into 2022. In the bank’s US Dollar to Turkish lira prediction, SEB draws on President Erdoğan’s unorthodox approach to dealing with elevated inflation, which he doesn’t expect to end successfully.
The algorithm-based forecast website Wallet Investor predicted that US Dollar versus the Turkish Lira could strengthen over the coming years. The US Dollar to Turkish Lira rate was forecast to rise to 18.02 at the end of 2022. The website’s USD/TRY longer-term forecast suggested the exchange rate could continue to rise to close 2023 at 19.51, 2024 at 20.99, and 2025 at 22.48.
According to Trading Economics global macro models and market analysts. US Dollar versus the Turkish Lira could trade at 16.73 by the end of this quarter, before rising to 17.74 by the end of 2022.
It is worth keeping in mind that both analysts and online forecasting sites can and do get their predictions wrong. Keep in mind that past performance and forecasts are not reliable indicators of future results. And never invest more money than you can afford to lose.
How to Speculate on Today’s US Dollar vs Turkish Lira Price?
When you trade Forex CFDs, there's no physical asset transfer involved. Instead, your transactions take place through a network of financial institutions, on your FX broker's trading platforms.
Due to the above US Dollar versus Turkish Lira background, USDTRY is particularly characterized by being traded for interest purposes.
However, the Turkish lira has some risks.
For example, there are political risks unique to emerging countries and geopolitical risks due to foreign affairs, such as “falling currency value due to rising inflation” and “falling due to worsening political and economic prospects”.
Such risks are reflected in the magnitude of price movements. Moreover, USDTRY has a 1:10 Leverage – leverage increases your buying power and lets you open positions with less capital, but also with increased risks.
Browse our live US Dollar vs Turkish Lira chart to get the information you need on USDTRY price today
US Dollar to Turkish Lira has been steadily trending higher across recent years. The pair kicked off 2021 at 7.42, clawing higher to trade at 8.25 at the start of September. From September, USD/TRY surged upward, jumping 120% in a few months. In other words, the Turkish lira more than halved its value against the US dollar between September and December, when the price hit 18.07 an all-time high.
Volatility in the pair didn’t end there. The Turkish lira surged 30% pulling USD/TRY lower to 11.01 before it picked up slightly to 12.95, where it is trading at the time of writing.
With CAPEX.com live USDTRY charts you can trace the historical value of the US Dollar vs Turkish Lira over the years.
Basic analysis is necessary before speculating on the US Dollar vs Turkish Lira prices. There are many factors that will impact the US Dollar to Turkish Lira rates in 2022. After the recent big swings, it's difficult to say where the pair could go from here. A lot depends on whether investors believe that Erdogan’s value pledge or not. If they don’t then US Dollar to Turkish Lira could trend higher.
As with any investment, make sure you carefully assess your financial situation before investing in the forex market. US Dollar vs Turkish Lira price can be extremely volatile.
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