The lira is now down 4.5% against the dollar, USD/TRY rises to 6.29
We're coming back to the blink-and-you-miss-it moments in the lira. USD/TRY is on the verge of the 6.30 level once again.
Turkish markets are back from their holiday this week and it seems like the lira's volatility is back along with it too. After a week of rather subdued trading near the 6.00 handle against the greenback, the lira is on the move again.
In short, we're still very much in the same situation as we were before the week's holiday in Turkey. Investors are still nervous that there's still no feasible solution on the cards for Turkish authorities to resolve their dispute with the US.
And that continues to be the main driver in what is pushing the lira weaker thus far. I believe quite a number of speculative shorts have been flushed out from the squeeze around 7.00 to 5.70, but it looks like they're starting to come back in again.
