Interest Rates: Higher interest rates typically strengthen the TRY, attracting foreign investment seeking higher returns. Conversely, lower rates can weaken the currency.

Inflation: High inflation erodes purchasing power, usually leading to a depreciation of the TRY. Lower inflation can stabilize or strengthen the currency.

Political Stability: Political instability and uncertainty can negatively impact investor confidence, causing the TRY to weaken. Stability generally supports the currency.

Economic Growth: Strong economic growth often boosts the TRY, as it signals a healthy and attractive investment environment. Slow growth can weigh on the currency.

Current Account Deficit: A large current account deficit, where imports exceed exports, can put downward pressure on the TRY, as it increases the demand for foreign currency to pay for imports.

Government Policies: Fiscal and monetary policies implemented by the Turkish government can significantly influence the TRY's value.

Global Risk Sentiment: During periods of global risk aversion, investors tend to flock to safer assets, potentially weakening the TRY.

Geopolitical Risks: Regional conflicts or geopolitical tensions involving Turkey can negatively affect investor sentiment and the TRY.