The Turkish lira has once again hit rock bottom. It is struggling to stay afloat, desperately trying to recover from its latest plunge. On February 3, the lira traded at 36 against the US dollar, driven down by Turkey's latest inflation data. In light of the inflation data from Turkey, the US dollar strengthened, sending the lira to its record lows. The greenback continues to dominate global markets. It gained 0.83% against the lira to 35.9931. The highest level recorded on February 3 was 36.0015 per US dollar.
The Turkish Statistical Institute (TÜİK) reported that the annual CPI stood at 42.12% in January, exceeding the forecast of 41.25%. According to Freedom Finance Global analysts, the CPI jumped to 5.03% month-on-month in the first month of the year compared to just 1.03% in December. The latest inflation spike was triggered by higher costs in education and healthcare services. Besides, housing and hospitality-related services became more expensive across Turkey.
As a result, the US dollar is climbing steadily, while the lira extends its weakness. In the meantime, the greenback owes its strength to ongoing geopolitical jitters and the trade policies of US President Donald Trump.
