13 May 2015
Further weakness lies ahead for TRY – Rabobank
FXStreet (Edinburgh) - Strategist Piotr Matys at Rabobank sees the Turkish lira losing further ground in the upcoming months.
Key Quotes
“The lira has been the worst performing currency in the EM universe so far this year”.
“Not only has the lira plummeted to an all time low against the US dollar, but it is the only currency amongst its EMEA peers which weakened against the euro due to unfavourable domestic factors dominated by concerns about Turkish politics in the context of upcoming general elections in June”.
“Unless the CBRT starts defending the TRY vigorously (a rate hike would be the most efficient tool, but Governor Basci will be reluctant to pull the trigger ahead of the June elections) and US data continue to disappoint in the coming months, USD/TRY is likely to set another all time high this year above the April top at 2.7433”.
Key Quotes
“The lira has been the worst performing currency in the EM universe so far this year”.
“Not only has the lira plummeted to an all time low against the US dollar, but it is the only currency amongst its EMEA peers which weakened against the euro due to unfavourable domestic factors dominated by concerns about Turkish politics in the context of upcoming general elections in June”.
“Unless the CBRT starts defending the TRY vigorously (a rate hike would be the most efficient tool, but Governor Basci will be reluctant to pull the trigger ahead of the June elections) and US data continue to disappoint in the coming months, USD/TRY is likely to set another all time high this year above the April top at 2.7433”.