Euro/TL continues to break records: it has surpassed the 40 level.

While the euro continues to appreciate against the dollar, the euro/TL exchange rate has also accelerated its upward momentum since January.

Euro/TL started its steep rise from the 37.7 levels in March and has reached 40 today, refreshing its record. Euro/TL has renewed its record in the last 6 business days and has gained nearly 6% since the beginning of the month. Since the beginning of the year, the euro rate has increased by 9.3%.

Dollar/TL exchange rate, on the other hand, has a more moderate upward momentum due to the weak outlook of the dollar in global markets. The dollar rate is trading at 36.58 today with a partial increase of 0.14%, and has appreciated by 3.5% since the beginning of the year.

The euro is gaining strength from concerns about US growth

The euro continues to rise against the dollar with the increasing growth concerns regarding the US economy. Recently, investors have started to focus more on the growth risks of the US.

It is believed that the US inflation data to be announced tomorrow could also increase market volatility. Some experts think that even if the inflation data comes in high, the market may prioritize US growth concerns. This supports expectations that the euro will continue to appreciate against the dollar.

Other expectations for the continued appreciation of the euro include Germany's expanding public spending plans. Europe’s expansionary fiscal policies and increasing signs of slowdown in the US economy are cited among the main factors pushing the exchange rate upwards. EUR/USD reached 1.0928 today with a rise of 0.87%. The pair found support at the 1.02 level in January and faced resistance at 1.05 for a while. However, with the start of March, the EUR/USD has gained momentum and appreciated by 5% since the beginning of the month.