Investors should buy the lira for an equally-weighted basket of the dollar and euro as concern about the current account deficit is easing, Credit Suisse Group AG said. Credit Suisse set a target of 2 liras against the basket with a “stop-loss” of 2.17, according to an e-mailed report today. “A large part of the underperformance of the lira this year has been due to investor skepticism about the central bank’s policy mix,” Credit Suisse said in a report dated yesterday. “With signs now appearing that the demand side of the economy is rebalancing, we think that the lira will strengthen from here.” The lira fell 0.3 percent to 2.0977 against the basket at 10:33 a.m. in Istanbul, paring two days of gains. It closed at a record low of 2.1786 on Aug. 22. The lira has fallen 22 percent against the basket over the past year, according to Bloomberg data. To contact the reporter on this story: Mark Bentley in Istanbul at mbentley3@bloomberg.net To contact the editor responsible for this story: Benjamin Harvey at bharvey11@bloomberg.net

Source