Heading into the quarterly inflation report due to be published by the Turkish central bank (CBRT) this Thursday at 1100 GMT, USD/TRY is extending the previous advance.

At the time of writing, the pair is posting small gains, sitting at the highest levels in a week above 13.60.

The unabated strength in the US dollar is mainly behind USD/TRY’s renewed upside, as bulls continue to cheer the hawkish Fed rhetoric. Fed Chair Jerome Powell hinted at faster rate hikes and balance-sheet reduction this year.

Meanwhile, Turkish central bank Governor Şahap Kavcıoğlu said on Thursday that the forex-protected lira deposit levels are around expected levels.

Additional quotes

“Will see an acceleration in these accounts.”

“Turks need to support de-dollarisation.”

Governor Kavcioglu’s remarks during Thursday’s press conference keep the lira under pressure.

All eyes now remain on Turkey’s first quarterly inflation report, with the country’s consumer inflation at over 36% in December, the highest rate during President Tayyip Erdogan’s 19-year rule.