USD/TRY pushes higher, gradually approaches 8.00

• USD/TRY once again clinches fresh all-time highs around 7.85.
• Fresh geopolitics jitters continue to weigh on the Turkish currency.
• The Turkish central bank will publish its minutes on Thursday.

Once again, the Turkish lira fell to all-time lows vs. the greenback, this time lifting USD/TRY to the area above 7.8500 during early trade.

USD/TRY focused on geopolitics and CBRT

The Turkish currency continues to debilitate on Tuesday. Now, with the centre of attention in the Caucasus, the ongoing conflict between Armenia and Azerbaijan carries the potential to see Russia and Turkey face each other, as these countries support the opposing parties.

In the meantime, the pair regained upside traction and quickly left behind the knee-jerk following the decision by the Turkish central bank (CBRT) to hike interest rates by 200 bps last Thursday.

It is worth noting that the lira shed nearly 25% vs. the greenback so far this year.

The next key event for TRY will be the publication of the CBRT Minutes on Thursday.

USD/TRY key levels

At the moment the pair is gaining 0.53 at 7.8376 and faces the next hurdle at 7.8525 (all-time high Sep.29). On the downside, a drop below 7.5082 (low Sep.25) would expose 7.4124 (low Sep.10) and finally 7.2019 (low Aug.21).