Turkey’s lira, which slumped to a record low in early November, continued a New Year rally, climbing to the highest level against the dollar in more than four months.
The lira rose by 0.4 percent to 7.27 per dollar at 11:23 a.m. in Istanbul local time, taking gains since the all-time low to more than 15 percent.
The central bank has hiked interest rates sharply since President Recep Tayyip Erdoğan sacked and replaced its governor two months ago, rendering lira assets more attractive. The rate increases have coincided with a spending spree by investors in emerging markets, prompted by growing optimism that vaccinations will bring an end to the COVID-19 pandemic.
The lira has broken through technical resistance at 7.29 per dollar and could rally to 7.2 in the short term, Dünya newspaper reported, citing a report by currency trading firm ALB Forex.