USD/TRY SURPASSES 21.00 TO PRINT FRESH ALL-TIME HIGHS

• USD/TRY advances to the 21.30 region on Monday.
• Investors appears skeptics after the appointment of M. Simsek.
• Türkiye headline CPI rose below 40% YoY in May.

There seems to be no respite for the weakness of the Turkish lira. That said, USD/TRY clocked a new record high well north of the 21.0000 mark on Monday.

USD/TRY: Further upside looks likely

USD/TRY maintains its firm bullish bias for yet another session and this time breaks above the 21.0000 mark with marked conviction, as investors remain highly apathetic following the announcement of new members of Erdogan’s cabinet.

Recently appointed Treasury and Finance Minister M. Simsek said over the weekend that returning to "rational ground" is necessary to ensure predictability in the economy and emphasized that the new government's primary objective will be to enhance social welfare.

It is worth noting that the lira has already lost more than 14% since January.

In the docket, inflation figures in Turkey tracked by the headline CPI rose at an annualized 39.59% in May and 0.04% vs. the previous month. It was the first reading below 40% since December 2021. In addition, the Core CPI (CPI excluding energy, food, non-alcoholic beverages, alcoholic beverages, tobacco, and gold) rose 46.62% YoY