BLBG:Turkish Lira May Depreciate to 1.9 Per Dollar on Bank’s Policy, RBS Says
The lira will probably decline to 1.9 per dollar by the end of the year, Royal Bank of Scotland Group Plc said, citing concern about the central bank’s monetary policy and the widening current account deficit.
RBS revised its year-end estimate for the lira from 1.75 to 1.8 per dollar, Tim Ash, global head of emerging market research in London, said in an e-mailed report to clients today.
“Now the over-riding comment from investors seems to be that Turkey is just a short,” he said. “Foreign investors currently appear to have little understanding or faith in the monetary policy mix at present, while there is evidence that the weak global backdrop is beginning to turn the domestic investor base much more negative.”
To contact the reporter on this story: Mark Bentley in Istanbul at mbentley3@bloomberg.net
To contact the editor responsible for this story: Aydan Eksin at aeksin@bloomberg.net
