USD/TRY drops below 5.27 on reports of US looking to withdraw troops from Syria

Citing a U.S. official, Reuters recently reported that the U.S. was considering a total withdrawal of its forces from Syria as its campaign to retake all of the territory once held by Islamic State was coming to an end. "Such a decision, if confirmed, would upend assumptions about a longer-term U.S. military presence in Syria, which U.S. Defense Secretary Jim Mattis and other senior U.S. officials had advocated to help ensure Islamic State cannot reemerge," Reuters said.

The initial market reaction to this development boosted the sentiment surrounding the Turkish lira and caused the USD/TRY pair to fall sharply. As of writing, the pair was trading at 5.2690, losing 1.4% on a daily basis.