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Forex pairs in this Article » USD/JPY (Bali) - After tumbling over 5% this month alone, the Turkish lira came under increased scrutiny around the globe, leading the Turkey’s central bank to call for an emergency meeting in an attempt to calm down the crisis.

The decision of the meeting has just been published and is quite hawkish. As Jamie Coleman, Analyst at FXBeat, explained earlier: "The central bank meeting in Turkey will gauge the central bank's willingness to move aggressively to counter currency weakness."

A hike of at least 250 bp was expected to help halt the slide in the Lira, Jamie said. However, the central bank has over-exceeded expectations by lifting the overnight rate to 12% from 7.75, which is having immediate implications for a reduction of risk off trades exposure, as one can tell by the reaction in the Yen, plummeting post the announcement.

Massive volume is being reported in USD/TRY, down 2.7% now. It is a risk-on environmentas the central bank has surprised the market.
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