Economy in Turkey: Latest situation in dollar and Borsa Istanbul after interest rate decision

The Central Bank of the Republic of Turkey (CBRT) announced its interest rate decision at 14:00. So, what happened to the direction of gold, the dollar, and the stock market after the decision?

The domestic markets were eagerly awaiting the Central Bank’s interest rate decision. The bank raised its policy rate by 500 basis points as expected, increasing it from 30% to 35%. So, what was the market’s reaction to this critical development?

INITIAL RESPONSE FROM GOLD

According to Milliyet’s report, the gram of gold, which started the fourth trading day of the week at 1,789 Turkish liras, rose above the critical threshold of 1,800 Turkish liras. The gram of gold rose to 1,808 Turkish liras at its highest, reaching an all-time high, before retreating slightly.

Before the interest rate decision, the gram of gold, which was at 1,796 Turkish liras, is currently trading at 1,795 Turkish liras.

STOCK MARKET ACTIVITY

At Borsa Istanbul, the BIST 100 index started the day with a 1.23% increase, at 7,516 points.

The BIST 100 index, which was trading at 7,582 points with a 2.13% increase before the interest rate decision, became more active after the decision. The index is currently trading at 7,487 points with a 0.83% increase. The highest level of 7,648 points was tested during the day.

The banking index is trading at 7,849 points with a 0.76% increase, while the industrial index is at 12,148 points with a 1.11% increase.

WHAT’S THE CURRENT SITUATION FOR THE DOLLAR AND EURO?

The USD/TRY exchange rate started the fourth trading day of the week above 28.12. The exchange rate is currently trading at 28.14 Turkish liras with a slight increase. Throughout the day, the USD/TRY exchange rate saw a low of 28.01 and a high of 28.36. Meanwhile, the Euro is trading at 29.71 Turkish liras at the same moment.