From time to time, we look at the USD/TRY cross as it's a brilliant live case for, how high-/hyper-inflation affects a national currency. Turkey has mistreated its currency for the past 4-5 years and shifted between trying to break the rising inflation pressure, by raising interest rates and letting it go when the financial ties get too tight. To restrain inflation, one needs a steady and patient hand, that eventually will kill the inflation pressure, which most countries now are feeling, due to ultra-loose monetary policy from the central banks.
USD/TRY peaked in late December 2021 and saw a major corrective decline to support at 10.72 only to see the TRY come under renewed pressure and we are now getting close to the all-time high at 18.36, but could easily see a continuation higher to 20.93. The risk of a runaway hyper-inflation is huge. If that's the case, then 20.93 will be nothing more than a temporary hurdle before renewed weakness.
