USD/TRY rose again above the 17.00 mark on Tuesday. Economists at Credit Suisse continue to see scope for a break above the 18.00 level.

USD/TRY looks set to rally again

“Our base case for USD/TRY remains one of a steady but relatively orderly increase in the foreseeable future as the central bank is forced to adjust the exchange rate while real rates remain extremely negative.”

“We see scope for a break above the 18.00 level in USD/TRY in coming weeks.” 

“Ultimately, the main candidate to reverse the upward trend in USD/TRY is an announcement that general elections will be brought forward. This is not our base case for Q3 but it is a scenario that cannot be ruled out completely.”