Turkish Lira Hits Fresh Record Low of 47.76 Against the Dollar on Wednesday; Turkey's Central Bank Releases Its Quarterly Inflation Report Tomorrow

The Turkish lira hit a fresh record Wednesday, crossing forty seven point seven six against the dollar. The record came one day before Turkey's central bank releases its quarterly inflation report. The dollar lira rate reached forty seven point seven six by Wednesday evening, an all time high. The lira has weakened steadily since crossing forty five and a half in mid May. On July ninth it was near forty six point eight six, and by July twenty first it passed forty seven point two. The lira has lost one point six percent in the past month and seventeen point two percent over the past year. Three factors sit behind the record: costlier funding, a widening trade deficit, and heavy energy imports. Annual inflation eased to thirty one point seven five percent in July; the policy rate held at thirty seven percent. For Iran, a weaker lira makes Turkish made goods and travel modestly cheaper in dollar terms. Tomorrow, Thursday, the central bank governor presents the quarterly inflation report at a briefing. Watch for any revision to the year end inflation forecast and the lira's immediate reaction. Even as inflation eased, a widening trade deficit pushed the lira to a fresh record low. Read the full story on Sahmino dot com. Do you think the lira weakens further, or claws back by year end?