Turkish lira reached its highest level in three weeks, as stocks and prices of bonds increased on Thursday. As the signs of the possible recovery of the US economy were reveled, it became clear to market traders that the Turkish prices of stocks are at their bottom.
Professionals say, that increasing consumer spending in the United States are a clear indicator of economic pick up in the biggest economy in the world, meaning that further recovery is coming up in the next months.
Lira, as one of the riskier currencies, became more demanded, as save-heaven currencies were sold off. And as the Federal Reserve policy statement was tweaked, the Lira kept climbing up, reaching new highs.
At the closing of the week, Lira gained some against the dollar, reaching the level of 1.5900, which reduced the yearly loss of the currency to the level of 3.6%. Turkish stock market traders see strong trends for positive recovery.
But if the temporary optimism of this week is not supported by other economic signals, it is very likely that next week the currency will be falling, especially that Turkey is due to announce April inflation rate on Monday. In part the Lira was increasing together with the general world risk appetite movement, experts say.