The Lira is outbidding all others with its yield offering to international investors and Credit Agricole has flagged it as the number one ‘carry trade’ out there.
Read more: Turkish Lira Top of the Yield Crop and a "Carry Trade for the Brave"
The Turkish Lira softened ahead of the weekend but has been an outperformer for the month of August and remained close to an important resistance level against the Dollar, any overcoming of which could lead to even further declines in USD/TRY as well as GBP/TRY.
Read more: Turkish Lira Breakout Risk Puts 8.06 and 11.08 on Radar for USD/TRY and GBP/TRY
The Lira advanced against the Dollar, Pound and Euro in a favourable market for risky currencies on Wednesday after the Central Bank of the Republic of Turkey continued its bid to reduce inflation which, alongside Ankara, may test the CBRT and Lira’s resolve over the coming months.
Read more: Turkish Lira Gains on USD, GBP, EUR after CBRT Holds Rates
The Turkish Lira took no prisoners on Thursday when sweeping the board of opposition from major developed and emerging market currencies alike after the Central Bank of the Republic of Turkey defied a sceptical market and pressure from Ankara when leaving interest rates unchanged in its latest policy decision.
Read more: Turkish Lira Bid after CBRT Decision as 8.26 and 8.74 Fault Lines Define USD/TRY Outlook
The Turkish Lira has been an unlikely outperformer over the recent month but will need the Central Bank of the Republic of Turkey (CBRT) to defy pressure from Ankara for a reduction of interest rates this Wednesday and in the months afterward if its recovery is to continue.
Read more: Turkish Lira’s Recovery Faces CBRT Test after Month of Outperformance Inbox
