Turkish Lira May Slide 29% After Erdogan Victory, Morgan Stanley Says
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The Turkish lira is at risk of a 29% slump should President Recep Tayyip Erdogan, who clinched another five-year term, stick to his policy of keeping interest rates low.
That’s according to Morgan Stanley analysts including Hande Kucuk and Alina Slyusarchuk, who wrote in a Sunday note that the lira may reach 26 per dollar sooner than earlier expected and weaken close to 28 by the end of the year, without a change in policy direction. The currency closed at 19.97 per dollar on Friday, near a record low, before elections.