Turkish Lira Falling Sharply

The Turkish lira is falling sharply on Tuesday morning, despite a sharp decline in US 10-year Treasury yields, and a fall in the US dollar index.

The Turkish lira’s decline comes amid concerns about the central bank’s decision next Thursday, despite assurances that the interest rate will remain stable. The Turkish lira has advanced since the end of last week until Monday against the dollar. But speculation about interest rates from the two central banks of Turkey and the Federal Reserve has sent the lira down.

Also, the meeting between President Recep Tayyip Erdogan and his American counterpart, Joe Biden, did not result in any statements about a breakthrough in relations between the two countries, with the persistence of outstanding issues such as the Russian missile crisis.