Turkish Lira Traders Brace for a Tumultuous Week After Elections
- Currency rallies on Friday amid short-covering ahead of poll
- Options expiring Monday price in at least a 3 percent move
This article is for subscribers only.
Investors are bracing for a big move in the Turkish lira after this weekend’s election and they’re paying to protect themselves.
As Turks prepare to go to the polls on Sunday, the cost of hedging against fluctuations in the currency over a one-week period is trading close to the highest since the global financial crisis. Options that expire Monday priced in at least a 3 percent move in the lira in either direction as of Friday, compared with at least 2 percent on Thursday.