Lira Weakness Driven by U.S. Growth, Erdogan Comments
The Turkish lira has been depreciating since mid-February, reversing a trend that started in November. The weakness is mostly driven by stronger U.S. growth, Bloomberg Economics analysis shows, but recent remarks from President Recep Tayyip Erdogan haven’t helped. The former contributed 4.9 percentage points to the lira’s year-to-date depreciation, while a turn in sentiment coinciding with Erdogan’s comments contributed 2.3 percentage points to the currency’s weakening.
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