Bloomberg | May 17, 2018 04:57
(Bloomberg) -- The lira is being buffeted by signals stemming from President Recep Tayyip Erdogan and increasingly impatient investors who are conflicted by a lack of action.
If policy makers don’t act soon, the currency may test its record low of 4.5010 per dollar touched on Wednesday. It wouldn’t be the first time traders have been let down by inaction this week. Over the past six trading days, market expectations of a looming interest-rate increased were fueled by a meeting between Erdogan and economic officials, only to be extinguished by vague statements that followed.
Below is a chart of the “interventions” and the fleeting effect they had on the markets as investors say the ultimate cure to the lira’s ills is still missing: interest rates high enough to compensate for double-digit inflation and a widening current-account deficit.
Written By: Bloomberg
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