USDTRY tumbles after a dramatic interest rate hike in Turkey!

USDTRY is collapsing by as much as 4.5% after the central bank decided to lift interest rates from already a high level of 17.75% to as high as 24%, beating market expectations of 21 to 22%. This way the CRBT shows credibility in its attempt to tackle a surging inflation. Let us recall that a diplomatic conflict with the US has been very costly for Turkey as the USDTRY currency pair exploded from 5 to 7, fuelling a rise in inflation and automatically requiring higher interest rates. USDTRY is currently testing 6.00 with a strong support of 5.95. The trend line, possibly the next target for sellers, is far below.