ANKARA
The dollar plunged late Wednesday against the euro, after the U.S. Federal Reserve announced that an interest rate hike might be delayed, but rebounded Thursday against the single currency.
The U.S. dollar fell three percent Wednesday against the euro, when the Federal Reserve Board Chair Janet Yellen told reporters that it would not raise rates in April, and would tie any rate hike to better economic data.
While the Fed might raise interest rates in June, Yellen warned that the central bank would not be "impatient."
On Thursday, the dollar rose against the euro again to currently trade around 1.06, close to levels traded before the Fed's announcement.
The Turkish lira, analysts said, would continue to trade higher against the dollar for some time.
Ergun Tekgul, assistant manager at the Istanbul-based Ata Investment, said: "The Turkish lira’s value increased after the Federal Reserve’s announcement. It is related to international reactions against the dollar as other major currencies increased their value against the American currency as well."
Tekgul expected the dollar to remain at or below 2.559 to the dollar. He did not expect it to rise above 2.55 to the dollar, however.
Currently the lira is trading at around 2.5900.
