USD/TRY prods record top below 24.00 as Turkish President Erdogan appoints new CBRT Governor

USD/TRY sticks to mild gains at all-time high as Turkish Lira bears take a breather of late.
Turkish President Erdogan appoints US Finance Executive Erkan as CBRT Governor, talks of policy pivot gain attention.
Thursday’s US Dollar weakness checked bulls but alleged economic challenges for Turkiye propel USD/TRY.

Anil Panchal FXStreet

USD/TRY stays on the front foot around the all-time high below 24.00, close to 23.50 by the press time heading into Friday’s European session. In doing so, the Turkish Lira (TRY) sellers portray a cautious mood as the nation’s recently re-elected President Tayyip Erdogan appoints a new Governor of the Central Bank of the Republic of Türkiye (CBRT).

Earlier in the day, Reuters unveiled news confirming that Turkish President Erdogan appointed Hafize Gaye Erkan, a finance executive in the United States, to head Turkey's central bank as it prepares to reverse course and tighten policy after years of rate cuts and a simmering cost-of-living crisis.

The news also cites the nation’s record low foreign reserves of -$5.7 billion to mention the all-time high of the USD/TRY while suggesting a rate hike amid depleted foreign reserves, unchecked inflation and wide current account deficits.

On the other hand, the US Dollar Index (DXY) dropped the most in five weeks the previous day, licking its wounds near 103.30 of late, as downbeat US data flagged concerns of no rate hike from the Fed in June, as well as the US recession. That said, US Initial Jobless Claims rose to 261K in the week ended on June 02 versus 235K expected and 233K prior (revised). With this, the four-week average rose to 237.25K from 229.75K previous readings. Further, the Continuing Jobless Claims dropped to 1.757M in the week ended on May 26 from 1.794M prior (revised), compared to 1.8M market forecasts. Earlier in the week, the US ISM Services PMI, S&P Global PMIs and Factory Orders also printed downbeat outcomes.

Even so, the International Monetary Fund (IMF) on Thursday urged the US Federal Reserve and other global central banks to "stay the course" on monetary policy and remain vigilant in combating inflation, per Reuters.

Looking forward, the USD/TRY pair traders may witness consolidation of the latest gains should the market accepts the recent hopes of witnessing a CBRT rate hike. Even so, the pair’s momentum could be limited ahead of the next week’s Federal Open Market Committee (FOMC) monetary policy meeting. That said, Turkish Industrial Production for April can offer immediate direction to the pair.

Technical analysis

Although the overbought RSI conditions can trigger the USD/TRY pullback in a case where the Turkish Lira (TRY) price offers a daily closing below the previous day’s low of around 23.00.

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.