Turkish Lira Rises To 6-day High Vs U.S. Dollar After Turkey Rate Decision

The Turkish Lira climbed against the U.S. dollar in the European session on Thursday, as Turkey's central bank left its key interest rates unchanged and asserted to maintain a tight stance of monetary policy until inflation outlook displays a significant improvement.

The Monetary Policy Committee, led by Governor Murat Cetinkaya, kept the key lending rate, known as the Marginal Funding Rate, at 9.25 percent. This rate was last hiked in January by 75 basis points.

The overnight borrowing rate was maintained at 7.25 percent and the one-week repo rate was kept unchanged at 8.00 percent. The decision came in line with economists' expectations.

Despite expected partial correction in food prices, current elevated levels of inflation pose risks on the pricing behavior. The committee decided to maintain the tight stance of monetary policy.

The Turkish Lira firmed to a 6-day high of 3.5206 against the greenback, compared to Wednesday's closing value of 3.5327. Continuation of the Lira's uptrend may see it challenging resistance around the 3.5 region.