Turkish Lira Falls as Current Account Deficit Tops Forecasts
The Turkish lira weakened against the United States dollar on Monday after the country's current account deficit widened to $1.46 billion in May, exceeding forecasts of a $0.96 billion shortfall. The deficit increased from $1.11 billion a year earlier, while the cumulative gap reached $30.68 billion during the first five months of 2026, compared with $23.73 billion last year. Turkey's retail sales rose 13.7% annually in May, up from a revised 11.7% increase in April, while seasonally adjusted monthly sales climbed 2.4% after a revised 1.7% decline. On the US front, the dollar eased as investors awaited consumer inflation data and Federal Reserve Chairman Kevin Warsh's testimony for policy signals, with the US Dollar Index slipping below 100.8, limiting broader gains against major currencies. At the time of writing, USD/TRY was trading at 46.9971, up 0.12%.
The Turkish lira weakened against the United States dollar on Monday after the country's current account deficit widened to $1.46 billion in May, exceeding forecasts of a $0.96 billion shortfall.
The deficit increased from $1.11 billion a year earlier, while the cumulative gap reached $30.68 billion during the first five months of 2026, compared with $23.73 billion last year.
Turkey's retail sales rose 13.7% annually in May, up from a revised 11.7% increase in April, while seasonally adjusted monthly sales climbed 2.4% after a revised 1.7% decline.
On the US front, the dollar eased as investors awaited consumer inflation data and Federal Reserve Chairman Kevin Warsh's testimony for policy signals, with the US Dollar Index slipping below 100.8, limiting broader gains against major currencies.
At the time of writing, USD/TRY was trading at 46.9971, up 0.12%.