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Lira Bears Back Off as Turkey Yield Offensive Quells Volatility

  • Buy lira versus euro, Morgan Stanley and Societe Generale say
  • Currency trims biggest loss among emerging markets this year

The gloom over Turkey’s lira is lifting.

The worst-performing emerging-market currency in the past year has climbed 6.4 percent from January’s record low against the dollar amid policy measures that boosted its yield appeal. Morgan Stanley and Societe Generale SA now recommend buying the lira against the euro, citing a responsive central bank and light positioning that leaves the Turkish currency poised for a rebound.