World’s Cheapest Currency Has Goldman and BlueBay on Its Side
- Lira is most undervalued based on OECD purchasing power parity
- BlueBay says rally “could be powerful” if locals also buy
An employee counts out 50 Turkish lira banknotes at a currency exchange office in Istanbul.
Photographer: Kerim Okten/BloombergThis article is for subscribers only.
If Janet Yellen and friends add any fuel to the rally in emerging-market currencies at Jackson Hole on Friday, the lira could be a big winner.
Turkey’s currency is on course for its seventh monthly gain, and still the likes of Goldman Sachs Group Inc. and Societe Generale SA are bullish. That’s because the advances have been limited and the lira remains the worst-performer among major currencies over the last 12 months. It’s also the most undervalued in terms of OECD purchasing power parity, with a real effective exchange rate that BlueBay Asset Management LLP sees as cheap.