Dollar Wiggles as FED Signals Interest Rate Hike

Greenspan disclosed that the rejuvenation in the U.S. economy is the reason an interest rates hike is required in the near future. He said no inflationist pressure exists and because of this the Fed could hold off a bit longer before raising the rate.

Strong expectations of an interest rate hike in the U.S. caused an increased demand for the dollar in Turkey, paving the way for a weakening of the Turkish Lira. Increasing demand in foreign currency markets pulled the dollar up. In the inter-bank market, the dollar closed at TL 1,391,000 yesterday.

A banking specialist commented that Greenspan’s remarks also affected the Turkish lira. The dollar started in between TL 1,375,000 – 1,380,000 during the first morning session. The banking specialist added that it is less likely that any concerns prior to the Cyprus referendum will affect the Turkish Lira.