TRY: Short-lived rally signals ongoing challenges – Commerzbank
|The Turkish Lira's recent rally was short-lived, with USD/TRY trading higher than before the central bank's rate decision. Analysts maintain a bearish outlook, citing ongoing inflation challenges and ineffective monetary policy. The Lira's depreciation is expected to continue without significant intervention. Commerzbank FX Analyst Tatha Ghose reports.
Lira's rally fails to sustain momentum
"The reasons why we hold a bearish view – about how far high interest rates have solved the inflation problem – remain unchanged since that writing."
"Further to the above fundamental reasoning, relentless management of the exchange rate by policymakers and by state banks have created a pent-up gap in the exchange rate."
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