Turkish Lira Appeared as the Only EM Currency to Strengthen against USD Yesterday and Today, on November 6—7th

Turkish lira (TRYUSD) was the only emerging market currency that demonstrated a hike against USD on Wednesday. This became against the abrupt dollar ascension on the prospects of Donald Trump's return to the White House.

According to some polled Fx traders, the Turkish currency went up 0.3% against USD in early morning Europe’s trading. This was possible thanks to the currency’s active support from state-owned banks, which also facilitated the entry of foreign funds into the market.

Government lenders sold more than 500 million dollars to support the lira at around 34.355 per dollar. It makes sense for foreigners to buy the lira because the interest rate differential is still attractive and the volatility of other emerging market currencies remains too high to employ various multiday strategies. Even before the election, investors were betting that the lira could benefit from Turkish President Recep Tayyip Erdogan's rather warm personal relationship with Trump.