TRY Market Update
18 Jul 2026 • 01:14 GMT
The Turkish lira (TRY) has weakened against the US dollar over the past three months, trading near 0.021205, its lowest point in 90 days. This is roughly 2.5% below its 3-month average of 0.021754. Despite recent stability within a narrow range, the TRY remains vulnerable amid ongoing economic adjustments in Turkey.
Recent policy moves include a 250 basis point rate hike by the Central Bank of Türkiye in January to help control inflation, which is targeted at 5% for 2026. However, inflation remains higher than desired, with projections for 2026 showing a rate of 28.5%. Standard measures such as increased reserve requirements aim to stabilize the currency, but the TRY continues to face pressure from persistent inflation and geopolitical factors.
Meanwhile, the US dollar remains supported on the back of rising energy prices and geopolitical tensions in the Middle East, keeping USD generally firm. The dollar's strength contributes to the TRY’s depreciation, as traders weigh external influences alongside domestic economic policies.
Overall, the TRY faces a challenging environment of monetary tightening and external pressures, with currency movements likely to stay sensitive to global energy prices and regional geopolitical developments.
📊 Quick forecast view
🔴 Mild downside
0.0210 – 0.0210
🌍 Global risk sentiment
🔴 Downtrend
