20 Mar 2015
Turkish lira to remain subdued in the near term – Danske Bank
FXStreet (Edinburgh) - Vladimir Miklashevsky, Economist at Danske Bank, see the Turkish currency extending its weakness in the near term.
Key Quotes
“The pre-election pressure on the TCMB continues, which can be seen through the lira’s record weakening”.
“However, the weakened lira is limiting the central bank in its intentions to ease, which is justified by stabilised inflation”.
“Thus, we are critical about the possibility for any recovery in the lira in the near term as the lira is facing significant short-term headwinds”.
“First of all, increased expectations for rate hikes from the Federal Reserve are normally negative for high-beta and high current account deficit currencies like the lira. Second, the political situation in Turkey remains challenging”.
Key Quotes
“The pre-election pressure on the TCMB continues, which can be seen through the lira’s record weakening”.
“However, the weakened lira is limiting the central bank in its intentions to ease, which is justified by stabilised inflation”.
“Thus, we are critical about the possibility for any recovery in the lira in the near term as the lira is facing significant short-term headwinds”.
“First of all, increased expectations for rate hikes from the Federal Reserve are normally negative for high-beta and high current account deficit currencies like the lira. Second, the political situation in Turkey remains challenging”.