USD/TRY jumps above 3.00, eyes 2016 highs

The Turkish lira tumbled across the board after reports said that the education board asked for the resignation of all deans from universities. Fears of a wide-range crackdown on dissenters added bullish pressure to the USD/TRY that from Thursday’s levels is up by 5.20%.

The pair reached 3.0300 and pulled back modestly. It was trading at 3.0260, remaining strong and pointing toward January highs located around the 3.06 handled.

Earlier the central bank reduced its Overnight Lending rate to 8.75% from 9.00%, and kept unchanged the Overnight Borrowing rate at 7.25% and the One-Week repo rate at 7.50%, favoring some stabilization in the pair but the pause was short-lived.

The TRY remains vulnerable in the market with all the institutional turmoil after Friday’s  failed attempt of a military coup.