The Turkish lira or TRY rallied yesterday after news that Ankara and Moscow reached an agreement regarding Syria. The Russian government warned the Kurdish forces or Kurdish YPG militia fighters to leave the Turkey-Syria border.
According to Moscow, if the Kurdish unit failed to comply with their orders, they will be crushed by the Turkish army. The Russian Soviet Federative Socialist Republic said the US has betrayed and left the Kurdish fighters on the border.
On Tuesday, Moscow and Ankara agreed to deploy some of their officers in the northeastern part border of Syria to remove the Kurdish fighters.
And yesterday, Kremlin spokesperson Dmitry Peskov reportedly reacted to US President Trump’s comments about a special envoy.
The news caused the Turkish lira to rally against the US dollar in Wednesday’s trading sessions.
The USD to TRY exchange rate dropped by 0.80% or 0.0464 points yesterday. The pair extended its losses from ₺5.8110 to as low as ₺5.7545 during the sessions.
The Turkish lira started the week on a positive note as it sent the US greenback on the edge on Monday. The currency is currently on its third day of consecutive gains.
Currencies with Benefits
The Turkish lira also benefited from the US senators who agreed to withhold sanctions against the country. The US officials are thinking about allowing diplomatic efforts a chance to develop.
TRY traders are also bracing themselves for the decision of the Turkish central bank whether it will cut its current interest rates. Analysts forecast an easing of 16.5% to 15.5% in today’s meeting.
On the downside, some believe that the Turkish lira could soon start easing or falling in trading sessions. Fear about the slowing economy of the country still caps the gains of the lira in sessions.
The country’s Monetary Policy Committee will hold its meeting today for the seventh time this 2019. The meeting will determine the bank’s stance about its economy and its move for the interest rate.