With the Euro reaching a four-month high due to the weakening of the dollar and a major deal in Germany, the Euro/Turkish Lira also climbed to 39.07, breaking records. The upward movement in exchange rates continued, with the Euro/Turkish Lira breaking records due to global developments. Fear of trade wars weakened the dollar. Following retaliations from China and Canada, the Dollar Index dropped below 105, hitting a three-month low. Over the last three days, the index recorded a 2.5% decrease. On the Euro side, the decline in the dollar and Germany’s 500 billion euro plan accelerated the rise. The Euro/dollar pair rose above 1.072 this week, with an increase of over 3% per day, reaching its highest level since November 2024. As the Euro strengthened against the US dollar, it also appreciated against the Turkish Lira. The Euro/Turkish Lira reached 39.07 with a nearly 1% increase. Meanwhile, the Dollar/Turkish Lira exchanged hands at 36.44. Political parties in Germany, in talks to form a coalition, agreed to relax borrowing limits to establish a 500 billion euro infrastructure fund and increase military spending. All eyes are now on inflation figures in the domestic markets. Following lower-than-expected inflation, it is highly anticipated that the Central Bank of the Republic of Turkey (CBRT) will cut interest rates. It is expected that the CBRT will reduce the policy rate from 45% to 42.5%.