The Euro reached a four-month high, aided by the weakening of the dollar and a major deal in Germany. Climbing up to 39.07, the Euro/TRY also broke a record. As there continues to be upward movement in foreign exchange rates, the Euro/TRY hit a new high due to global developments. Fear of trade wars weakened the dollar. Following retaliations from China and Canada, the Dollar index fell below 105, hitting a three-month low. The index recorded a 2.5% drop in the last three days. On the Euro side, the decline in the dollar and Germany’s 500 billion Euro plan accelerated the rise. The Euro/dollar exchange rate increased above 1.072 this week, with a daily increase of over 3%, reaching the highest level since November 2024. In parallel with the strengthening of the Euro against the US dollar, it also gained value against the Turkish Lira. The Euro/TRY saw an increase of close to 1%, reaching 39.07, while the Dollar/TRY changed hands at 36.44. Political parties in Germany, meeting to form a coalition, agreed to relax the borrowing limit to establish a 500 billion Euro infrastructure fund and increase military spending. Eyes are now on inflation figures in the domestic markets, ahead of the Central Bank’s interest rate decision to be announced tomorrow. It is strongly expected that the Central Bank of the Republic of Turkey will cut interest rates following lower-than-expected inflation. A reduction in the policy rate from 45% to 42.5% is expected.