The lira rose sharply after the Central Bank of Turkey increased rate

The Turkish lira began to rise against the dollar on Thursday after the announcement of the results of the meeting of the Turkish central bank, which sharply raised the discount rate. 

The current rate of the USD/TRY pair is 25.54 lira. Before the publication of the regulator's decision, the dollar was worth 27.23 lira.

Recall that today the Central Bank of Turkey sharply increased the discount rate by 750 basis points at once, to 25% from the previous 17.5%. This came as a surprise to market participants, as many expected a more cautious approach to changing monetary policy in the country. 

In June, the regulator also announced its intention to gradually tighten monetary policy until high inflation forecasts change. In July, the value of the Turkish lira updated its historical minimum against the dollar, breaking the mark of 27 lira per dollar for the first time.