TRY recovers from losses after Erdogan's comments

Turkish lira gained around 0.7% following an interview with Turkish President Erdogan. Erdogan said that he will accept steps that finance minister Mehmet Simsek and new CBRT chief Gaye Erkan, which was suggested for the post by Simsek, will take. However, Erdogan said that his unorthodox view on interest rates has not changed. Nevertheless, Erdogan's comments suggests that action may be taken aimed at stabilizing or even strengthening TRY as well as at further reduction in inflation.

TRY is trading around 17% lower against USD since the Turkish presidential election run-off. While comments from Erdogan today pushed USDTRY lower, the pair continues to trade above the lower limit of a short-term trading range.

Source: xStation5