TRY remains under pressure – Danske Bank

Vladimir Miklashevsky, Economist at Danske Bank, expects the Turkish Lira to remain under pressure in the next months.

Key Quotes

“The lira has stabilised on the ongoing emerging market rally, while the Turkish economy showed improving macro indicators”.

“We continue to see the lira receiving support in the short and medium term due to improvements in global risk sentiment and rising appetite towards emerging market assets because of the dovish Fed, ECB and BoJ”.

“We expect a slight deterioration in the TRY spot in the long run due to rising oil prices and weaker exports, which we believe will add to pressure on the current account deficit”.