Turkey Bulls Must Be Basking in Lira’s Resilience
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The prospect of a global oil spike threatened to pull the rug out from under the lira. Not so. While it’s unclear how long this price surge will last, the lira’s resilience is a sign it’s better positioned to withstand such shocks.
Traders, rushing to lock in the currency’s juicy yield before rates fall further, are operating under the assumption that inflation will dip into the single digits though October. Should surging crude prices fan consumer price growth in Turkey -- a net energy importer -- the whole investment case risks being undermined.