Lira Oversold as Turkish Graft Probe Spurs Drop: Market Reversal
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The Turkish lira is poised to rebound after a corruption scandal engulfing Prime Minister Recep Tayyip Erdogan’s government pushed the currency to its most oversold level in a decade.
The lira’s 14-day relative-strength index climbed to a 10-year high of 74 this week, measured on a quarterly basis, signaling a turnaround may be imminent, data compiled by Bloomberg show. The RSI stood at 63 at the end of June last year when mass unrest was ignited by police tear-gassing a park in Istanbul occupied by people who opposed plans to tear it down for a government redevelopment project. The lira slid yesterday to 2.1886 per dollar, its weakest level since at least 1981.