USD/TRY risk reversals hit lowest since Jan. 31

• USD/TRY risk reversals drop to the lowest level in over eight months. 
• The data indicates a falling demand for the bearish bets (put options) on TRY. 

Risk reversals on USD/TRY (TRY1MRR), a gauge of calls to puts on Turkey's currency, fell to the lowest level since Jan. 31 on Friday, indicating the investors are positioning for a rise in Lira (TRY). 

The one-month risk reversals fell to 1.925, the lowest level in over eight months, having hit a high of 3.55 in August and 7.86 in April. 

The slide represents a sharp drop in the demand or implied volatility premium for the TRY put options (bearish bets). 

As of writing, the USD/TRY pair is trading at 5.7121, representing a 0.48% gain on the day. 

TRY1MRR