Economy / Turkey
If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.
If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.
TRY Upside Continues
August 2006 | Market AlertSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
If you would like to subscribe to Emerging Markets Monitor and gain instant access to this article, please click here to subscribe.
If you would like to take a trial to Emerging Markets Monitor please click on the trial link below.
Our short-term bullish view of the Turkish lira continues to play out. Having first promoted potential upside in late June around the TRY1.5800/US$ area, the currency has appreciated by some 5.8% to its present level of TRY1.4480/US$, in addition to over five weeks of superb carry. With overnight rates trading above 17.50%, and potentially heading a little higher over coming weeks as the central bank acts to cap inflation, the carry is the most attractive in town. Gains of the last few days have been due to dollar weakness, on the back of weak US economic data and the Fed