Turkish Lira Offshore Rates Jump as Carry Traders Exit
- Overnight yields move above 50% for first time since September
- Carry traders said to exit positions amid currency volatility
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The cost of borrowing Turkish liras overnight in the offshore market spiked above 50% for the first time since early September as traders exited some of their so-called carry positions amid currency losses.
The overnight forward implied yield climbed 11 percentage points to 51%, the highest level since Sept. 3, signaling that overseas funds likely closed out some long-lira positions. Turkey’s lira depreciated on Monday after state lenders abstained from aggressively defending the exchange rate, according to people familiar with the matter.