The Turkish lira has depreciated rapidly since the turn of the year, recently notching its weakest ever level against the dollar, but analysts suggest the risks are still skewed to the downside.
In gauging how far the USD/TRY spot rate could rally, Trivedi suggested looking at 2018, when the dollar gained almost 50% against the lira in a short time period. He projected that the 2018 move is likely to be the upper bound for a discontinuous ascent in 2020.
Secondly, foreign positioning in Turkish local assets is much less now than in 2018, Goldman analysts highlighted. In the long run, Trivedi argued that there is significant interplay between short and long term outlooks at present, with further weakness in the coming days or weeks strengthening an already compelling case for rate hikes, which in turn could put the brakes on lira devaluation further down the line.Timothy Ash, senior emerging markets sovereign strategist at BlueBay Asset Management, said recent lira depreciation shows an "admission that the hard defense of the lira around the 6.
Ash suggested the defense had capitulated in part because rates were too low, forcing an excess burden onto intervention, compounded by a lack of foreign exchange reserve coverage.
Deutschland Neuesten Nachrichten, Deutschland Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Turkey wants to resolve eastern Mediterranean issue through dialogue'Despite all this, we want to believe that common sense will prevail. Both on the field and at the table, we side with international law, good neighbourliness and dialogue.' Turkey's Defence Minister Hulusi Akar
Weiterlesen »
Greece deprives children of education by closing minority schools: TurkeyShuttering minority schools is part of Greece's “assimilation and oppression” policy that it continues to follow for decades against the Turkish minority in Western Thrace, Turkey's foreign ministry said.
Weiterlesen »
RZA Wrote a New Jingle for Ice Cream Trucks to Replace 'Turkey in the Straw'RZA is writing a new jingle for ice cream trucks after Good Humor decided to retire 'Turkey in the Straw' due to its racist history
Weiterlesen »
France sends two fighter jets, frigate to eastern Mediterranean amid tensions with TurkeyFrance will send two Rafale fighter jets and the naval frigate 'Lafayette' to the eastern Mediterranean as part of plans to increase its military presence in the region, the armed forces ministry said on Thursday, amid signs of tension with Turkey.
Weiterlesen »
Covid-19 to have a lesser impact on economic growth: TurkeyTurkey's Finance Minister Berat Albayrak says the country's economy is expected to grow 'between -2 percent and +1 percent this year, above the world average.'
Weiterlesen »
Thanksgiving candy corn? Brach's launches new treat with turkey, green bean flavorsThe new flavors from candy company Brach's include green beans, roasted turkey, ginger-glazed carrot, sweet potato pie and cranberry sauce.
Weiterlesen »