Turkish lira weakens ahead of cenbank inflation report

Madiha Shakeel July 31, 2019

ISTANBUL: Turkey’s lira was trading slightly weaker on Wednesday, as investors wore a cautious stance ahead of an expected revision in the central bank’s inflation forecasts and its guidance on future moves in a meeting scheduled later in the day.

The lira stood at 5.5675, as of 0514 GMT, easing slightly from Tuesday’s close of 5.5580.

The central bank on Wednesday will announce its third inflation report of the year, and the first one since President Tayyip Erdogan sacked governor Murat Cetinkaya and replaced him with Murat Uysal, who was previously serving as Cetinkaya’s deputy.

The bank cut rates by a higher-than-expected 425 basis points last week and is also expected to release the minutes of that monetary policy committee meeting on Wednesday.

The lira, which gained in the previous four trading sessions, has been supported by expectations that the U.S. Federal Reserve will cut rates.

Copyright Reuters, 2019

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