The Turkish Lira Swing Ahead of Rhe Central Turkish Meeting

The Turkish lira traded around 8.5 against the US dollar after a volatile start to the week, amid strained US-Turkish relations and persistent concerns about the central bank’s credibility ahead of Thursday’s policy meeting.

Earlier this week, President Recep Tayyip Erdogan reiterated his country’s position on the S-400 missile defense system it purchased from Russia after its first face-to-face bilateral meeting with US President Joe Biden, which could lead to a new round of US sanctions.

Meanwhile, Turkish central bank policymakers are expected to keep interest rates at current levels despite the mounting inflationary pressure.