The Euro traded at a four-month high against the dollar. The Euro/TRY also hit a record high of 39.43.

As the upward movements in exchange rates continue, the Euro’s strong performance persists.

This week, the Euro gained nearly 5% against the dollar. The Euro/dollar pair hit its highest level in four months at 1.07.

The Euro’s rise has also been noticeable against the Turkish Lira. The Euro/TRY traded at 39.46 today with a 0.3% increase. The USD/TRY, on the other hand, exchanged hands at 36.43. The Euro’s performance was influenced by the weakening dollar and the agreement of political parties in Germany on a plan worth 500 billion euros. 

In the US, the tariff decisions of the Trump administration have escalated fears of a global trade war. The dollar index hit its lowest level since November 2024, dropping to 104. The decline in the index exceeded 3% this week. Political parties in Germany seeking to form a coalition agreed to relax the borrowing limit to create a 500 billion euro infrastructure fund and increase military spending. Additionally, European Commission President Ursula von der Leyen announced that new plans to strengthen the EU’s defense industry could mobilize around 800 billion euros. Interest rate decisions will be monitored on domestic markets tomorrow with the announcement of the Central Bank’s interest rate decision. It is firmly expected that the CBRT will cut interest rates after lower-than-expected inflation figures. The CBRT is expected to reduce its policy rate from 45% to 42.5%. Global markets will also be watching the interest rate decision of the European Central Bank. The ECB is expected to reduce its interest rate from 2.90% to 2.65%.