One Market Points to More Pain for Turkish Lira Near Record Low

Hedging against swings in the Turkish currency has almost never been so expensive, eclipsing the benefit of plunging oil prices for the beleaguered lira.

Turkey is a net energy importer, and with Brent falling below $20 a barrel amid a global supply glut, the economy should benefit from slower inflation and a narrower current-account deficit. Yet the options market points to more pain for the lira as it flirts with a record low.