Turkish lira hits record low against US dollar, surpassing 36 mark
File photo shows a mix of Turkish lira banknotes and a US 100-dollar bill. (Adobe Stock Photo)
The Turkish lira weakened to an all-time low against the U.S. dollar on Monday, breaching the 36.00 threshold for the first time in history. The greenback surged to ₺36.0015, driven by intensifying global risk aversion as fears over trade wars rattled investors.
Meanwhile, the euro to Turkish lira (EUR/TRY) exchange rate hovers around 36.90, pressured by a weakening euro against the dollar.
Adding to global economic jitters, former U.S. President Donald Trump implemented new tariffs on key trade partners, fulfilling his earlier pledge. The measures include a 25% tariff on Canada and Mexico and a 10% tariff on China.
Trump’s decision has fueled concerns about an escalating trade war, with analysts warning that such protectionist policies could further disrupt global supply chains and dampen economic growth worldwide.
Inflation surpasses expectations
On the other hand, Türkiye’s inflation climbed 5.03% in January on a monthly basis, failing to meet market expectations, the Turkish Statistical Institute (TurkStat) reported on Monday. While monthly inflation reached its highest level in 11 months, annual inflation dropped to a 1.5-year low.
Market participants turned their attention to the Central Bank of the Republic of Türkiye’s (CBRT) first inflation report of the year, set to be released on Friday. The bank’s current year-end inflation projection stands at 21%.
