The lira is down by 5.7% against the dollar so far this week as domestic markets return from their week-long break
And it is leading losses in the emerging markets space by quite a margin (Argentine peso is next with a 1.9% loss). Although we're not getting the massive one-day volatile spikes that we saw earlier in the month, the situation doesn't look like it's getting any better for the lira and for Turkish assets in general.
Against the greenback, the lira is down 1.4% on the day and earlier we had the latest economic confidence index for Turkey and it displayed the lowest reading since 2009:
Not that fundamentals like that matter all too much when a currency is facing such dire circumstances, but it certainly doesn't help to inspire market confidence and continues to build up the 'doom and gloom' rhetoric.
With the issue of the release of US pastor Brunson still looking like it's not finding any solution, expect any gains/rallies in the lira to still be met with a wall of offers.
