11 Apr 2014
TRY recent gains unsustainable? – BTMU
FXStreet (Barcelona) - Lee Hardman, Currency Analyst at BTMU, sees the recent upside in the Turkish lira as limited.
Key Quotes
“The lira has benefitted from the upturn in foreign investor confidence in Turkish assets which has been supported by reduced investor concerns over external financing resulting from the gradual normalization of Fed monetary policy, and reduced political uncertainty in Turkey following the local elections in March”.
“Still the lira’s recent rebound has been built upon shaky fundamental foundations. The announcement from Moody’s overnight that it has lowered its outlook for Turkey’s credit rating to “negative” from “stable” serves as a timely reminder that recent lira gains may prove only short-lived”.
Key Quotes
“The lira has benefitted from the upturn in foreign investor confidence in Turkish assets which has been supported by reduced investor concerns over external financing resulting from the gradual normalization of Fed monetary policy, and reduced political uncertainty in Turkey following the local elections in March”.
“Still the lira’s recent rebound has been built upon shaky fundamental foundations. The announcement from Moody’s overnight that it has lowered its outlook for Turkey’s credit rating to “negative” from “stable” serves as a timely reminder that recent lira gains may prove only short-lived”.