July REK Index Hits 105.96: Lira Gains Value Amid Market Dynamics

In July, the REK (Real Effective Exchange Rate) index rose to 105.96, indicating that the lira strengthened by 9.5% on a CPI basis and 4.3% on a PPI basis.

July's REK Landscape

According to the CBRT report, the index increased by 0.39 points to 105.96, improving from June's 105.57 level.

■CPI‑based REK: 0.39‑point rise

■PPI‑based REK: 0.43‑point rise, reaching 101.5

■Lira appreciation: 9.50 points (CPI), 4.29 points (PPI) increase

Currency Basket Movements

CBRT data shows the lira gained against the dollar by 1.76% and the euro by 0.77%, lifting the weighted average of the basket.

■Dollar: +1.76%

■Euro: +0.77%

■Nominal Basket: Slight decline, exerting a negative impact on the index

Inflation's Role and Lira Valuation

CPI's 1.78% rise acted as a driver for the REK index's increase. The gap between the World CPI Basket and the Nominal Basket created a dampening effect on certain parts of the index.

■CPI: +1.78%

■PPI: +1.52%

■World CPI Basket: Balancing influence on the index

Market Participation and Smart‑Money Traces

In FX markets, dark pool and AKD data point to smart‑money flows supporting the lira's appreciation. Investors' indicator‑based positions confirm the upward trend of the REK index.

■Dark pool volume: Rising trend

■AKD allocations: Lira‑favorable tilt

■Clearing data: Increased liquidity and price stability

The market views this development as an opportunity for short‑term FX strategies. Smart money is bolstering positions that back the lira's gain while aiming to keep volatility in check. Volkan Şen, HFT and market‑depth specialist.