The impact of U.S FED tapering will be much lower than seen in May, Reuters quoted Turkish Central Bank deputy chairman, Turalay Kenc as saying. The FED tapering already had its impact on currencies and flows, the remaining impact is quite low, according to Kenc who also said that TRY has already seen the tapering impact, losing 18% of its value since May. Despite TRY's sharp decline, the Central Bank has not hiked rates but instead it is trying to support the currency through USD sales. The U.S FED said it would reduce its USD 85bn /month bond buying programme by USD 10bn . The Lira hit another record low on Tuesday against USD and EUR as the political noise/corruption scandal combined with concerns over the country's external imbalances continue to weigh on sentiment.
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