Dollar lira rate could reach new record highs in case of capital outflow from Turkey

Based on predictions shared by a financial establishment in Europe, experts say there could be prospects of a strong reaction in US dollar Turkish lira rate, in case of a capital outflow from Turkey. The report also says that Turkey shares, have been taking advantage of the simultaneous recovery in global economy realized in the leadership of emerging markets and BIST 100 index has made an impressive rally of 69.3 percent since the end of 2016.

Experts have often stated that dollar lira rate has followed a downward trend since beginning 2017 and the capital inflow to the country had a substantial impact on this situation. However they now comment that this scenario could change due to the unfavorable relations between the USA and Turkey which started deteriorating in September 2017.

Consequently, in case of acceleration of capital outflows from Turkey we could witness a very strong reaction in the rate of US dollar Turkish Lira. In such as case, the rate could be expected to break the 3.9826 record of all times.